Nuveen’s all-cash bid of £5.90 per share for Schroders has overshadowed the firm’s strong second-half results. Adjusted operating profit surged 43% and efficiency gains pushed its cost/income ratio below guidance, strengthening the case for investors demanding a higher price.

The deal, structured as a scheme of arrangement, forces minority holders out if 75% of votes back it. Family trusts and directors back the deal, but other major shareholders are waiting for more clarity or better terms before supporting the offer.

Fair value estimate raised to GBX 550, reflecting a 75% chance the deal closes at £5.90. Offer looks fair but not compelling, matching Schroders’ long-term average. Talks of mergers in European asset management may revive, but Amundi or DWS unlikely to enter the fray due to core strategic business.

Schroders secured major ESG-driven mandate wins, highlighting growing allocator concerns about US owners. European rivals with strong ESG credentials may find openings due to shifting landscape.

Read more at Morningstar: Schroders Earnings: Strong Performance Strengthens Case for Higher Nuveen Bid