Edinburgh Fund Managers Group plc (“EFM”) has called off merger talks with Hermes Pensions Management Limited (“Hermes”). EFM says discussions between the two parties were “proceeding constructively” but Hermes was not able to obtain the comfort it sought regarding the retention of The Edinburgh Investment Trust as a client. The board of EFM expects to continue to co-operate with Hermes as an independent business.
John Wright, chairman of EFM, said: “We are disappointed that talks with Hermes regarding a takeover of EFM are now at an end. We are not in talks with any other party. We have an excellent and dedicated staff, who will continue to provide our clients with an excellent service. We welcome the opportunity to work with Hermes in the future and believe this can be to the benefit of both our shareholders and our clients.”