Thursday, December 10, 2015 11:42:02 AM
Also this was back in the 2008-2010 time frame. Just eyeballing it quickly the stock price (OIH) looks to have oscillated around $50, lows around $25 and highs around $70, but hard looking at this to attribute a well planned NW take over as the downfall of the company, wouldn't you agree?
http://www.telegraph.co.uk/finance/comment/richardfletcher/8969322/Omega-Insurance-is-a-thorn-in-Neil-Woodfords-portfolio.html
As I noted back in 2008, Woodford invested in a string of Aim-listed
tiddlers brought to the market at the height of the credit bubble by Cenkos – despite his focus on income funds.
The decision to take sizable stakes in the illiquid Aim flotations left rival fund managers puzzled at the time. So unusual were the investments that a number of companies in which Invesco invested were forced to list the fund manager's influence as a "risk factor".
Like many of the smaller companies on the Aim market, many of the Cenkos flotations are now trading at substantial discounts to their float price – but few have caused Woodford as much hassle
as Omega.
Woodford has become increasingly embroiled in every twist and turn at Omega over the past two years. The fund manager led the ousting of the Omega board in 2010, with the (controversial) assistance of Cenkos – the insurer's own City advisers.
Back in October he appeared to have finally brought the sorry tale to a close, when he effectively backed Byrne's
83p-a-share tender offer in preference to a rival cash offer and a separate nil-premium merger. Unfortunately, he hadn't counted on Byrne getting cold feet.
Woodford is now stuck between a rock and a hard place. Worth just £43.5m, Woodford's stake in Omega is little more than a rounding error given the size of his funds. No doubt the fund manager – and his investors – would rather he focused his time and efforts on those companies that could actually have an effect on his funds' performance.
The star fund manager must now rue the day he invested in Omega.
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