Speculation swirled Tuesday that Denver-based Janus Capital Group is considering buying a piece of Amvescap Plc, the London-based parent of now-defunct Invesco Funds.
The speculation, reported by Dow Jones Newswires, marks the second report this week to suggest that mutual-fund company Janus is poised to make a major move.
Fortune magazine said Tuesday that Janus had hired Morgan Stanley to advise on a possible management buyout of the company.
Janus on Tuesday declined to comment on both reports.
“There’s a lot of speculation out there, and we’ve adopted a policy that we don’t comment on rumors,” spokeswoman Shelley Peterson said.
The recent departure of Janus board member Robert N. Burt, who resigned in October citing differences with a “strategic option” the company was pursuing, may have helped spark speculation on the buyout, Fortune said.
Analysts were skeptical of both scenarios.
A marriage of Janus and Amvescap would make little sense because both companies specialize in growth-style investing, said Rachel Barnard, an equity analyst with Morningstar in Chicago.
“Janus would be buying more of the same,” Barnard said. “It would make more sense to diversify their business.”
As for the management buyout, Barnard said the recent Janus stock increase could make that too costly. Janus closed Tuesday at $19.61 per share, up 53 percent from its 52-week low of $12.75.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
