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Standard Life's CEO to run day-to-day business after Aberdeen merger

Reuters  |  LONDON 

By Carolyn Cohn

(Reuters) - Chief Executive Keith Skeoch will oversee its day-to-day running after it merges with Management, while boss Martin Gilbert will handle external matters like marketing, the companies said.

Analysts have expressed concern that the co-chief executive structure proposed by the firms when they announced the 11 billion-pound ($13.6 billion) deal two weeks ago will be unwieldy.

"Both boards have thought carefully about the key responsibilities and believe that the proposals play well to Keith's and Martin's respective leadership strengths," Gerry Grimstone, chairman and chairman of the proposed firm, said in statement on Monday.

"This blend of complementary skills and experience will serve the company well".

Skeoch said in an emailed statement that the structure would "provide clear leadership and stability".

Skeoch's responsibilities will include investments and pensions, while Gilbert's will involve marketing and distribution, the two firms said, adding that chairman's committee will be set up to ensure co-ordination is effective, chaired by Grimstone.

The terms of the valued at 3.8 billion pounds in deal which gives shareholders just over two thirds of the combined group, although the board will comprise equal numbers of and directors.

Analysts say the is defensive, as active fund managers face increasing regulatory scrutiny and competition from lower-cost index tracking funds, and could lead to outflows from both firms.

Following an initial rally, the shares of both firms have fallen below their closing prices on March 3, shortly before the deal was announced.

Peter Lenardos, analyst at RBC, said that while the statement was helpful in soothing concerns about the co-CEO structure, "investors' primary concerns relate to ongoing net outflows at each business, and the potential for further disruption as the businesses integrate".

Lenardos has "perform" rating on and "underperform" on

Life's shares were trading at 363.4 pence at 1246 GMT, up 1 percent on the day but down 4 percent from March 3.

Aberdeen's shares were up 1.2 percent at 364 pence by 1458 GMT, when Aberdeen's shares were up 0.45 percent at 267.8 pence, valuing the company at 3.53 billion pounds.

($1 = 0.8075 pounds)

(Editing by Alexander Smith, Greg Mahlich)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Standard Life's CEO to run day-to-day business after Aberdeen merger

LONDON (Reuters) - Standard Life Chief Executive Keith Skeoch will oversee its day-to-day running after it merges with Aberdeen Asset Management, while Aberdeen boss Martin Gilbert will handle external matters like marketing, the companies said.

By Carolyn Cohn

(Reuters) - Chief Executive Keith Skeoch will oversee its day-to-day running after it merges with Management, while boss Martin Gilbert will handle external matters like marketing, the companies said.

Analysts have expressed concern that the co-chief executive structure proposed by the firms when they announced the 11 billion-pound ($13.6 billion) deal two weeks ago will be unwieldy.

"Both boards have thought carefully about the key responsibilities and believe that the proposals play well to Keith's and Martin's respective leadership strengths," Gerry Grimstone, chairman and chairman of the proposed firm, said in statement on Monday.

"This blend of complementary skills and experience will serve the company well".

Skeoch said in an emailed statement that the structure would "provide clear leadership and stability".

Skeoch's responsibilities will include investments and pensions, while Gilbert's will involve marketing and distribution, the two firms said, adding that chairman's committee will be set up to ensure co-ordination is effective, chaired by Grimstone.

The terms of the valued at 3.8 billion pounds in deal which gives shareholders just over two thirds of the combined group, although the board will comprise equal numbers of and directors.

Analysts say the is defensive, as active fund managers face increasing regulatory scrutiny and competition from lower-cost index tracking funds, and could lead to outflows from both firms.

Following an initial rally, the shares of both firms have fallen below their closing prices on March 3, shortly before the deal was announced.

Peter Lenardos, analyst at RBC, said that while the statement was helpful in soothing concerns about the co-CEO structure, "investors' primary concerns relate to ongoing net outflows at each business, and the potential for further disruption as the businesses integrate".

Lenardos has "perform" rating on and "underperform" on

Life's shares were trading at 363.4 pence at 1246 GMT, up 1 percent on the day but down 4 percent from March 3.

Aberdeen's shares were up 1.2 percent at 364 pence by 1458 GMT, when Aberdeen's shares were up 0.45 percent at 267.8 pence, valuing the company at 3.53 billion pounds.

($1 = 0.8075 pounds)

(Editing by Alexander Smith, Greg Mahlich)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Standard Life's CEO to run day-to-day business after Aberdeen merger

By Carolyn Cohn

(Reuters) - Chief Executive Keith Skeoch will oversee its day-to-day running after it merges with Management, while boss Martin Gilbert will handle external matters like marketing, the companies said.

Analysts have expressed concern that the co-chief executive structure proposed by the firms when they announced the 11 billion-pound ($13.6 billion) deal two weeks ago will be unwieldy.

"Both boards have thought carefully about the key responsibilities and believe that the proposals play well to Keith's and Martin's respective leadership strengths," Gerry Grimstone, chairman and chairman of the proposed firm, said in statement on Monday.

"This blend of complementary skills and experience will serve the company well".

Skeoch said in an emailed statement that the structure would "provide clear leadership and stability".

Skeoch's responsibilities will include investments and pensions, while Gilbert's will involve marketing and distribution, the two firms said, adding that chairman's committee will be set up to ensure co-ordination is effective, chaired by Grimstone.

The terms of the valued at 3.8 billion pounds in deal which gives shareholders just over two thirds of the combined group, although the board will comprise equal numbers of and directors.

Analysts say the is defensive, as active fund managers face increasing regulatory scrutiny and competition from lower-cost index tracking funds, and could lead to outflows from both firms.

Following an initial rally, the shares of both firms have fallen below their closing prices on March 3, shortly before the deal was announced.

Peter Lenardos, analyst at RBC, said that while the statement was helpful in soothing concerns about the co-CEO structure, "investors' primary concerns relate to ongoing net outflows at each business, and the potential for further disruption as the businesses integrate".

Lenardos has "perform" rating on and "underperform" on

Life's shares were trading at 363.4 pence at 1246 GMT, up 1 percent on the day but down 4 percent from March 3.

Aberdeen's shares were up 1.2 percent at 364 pence by 1458 GMT, when Aberdeen's shares were up 0.45 percent at 267.8 pence, valuing the company at 3.53 billion pounds.

($1 = 0.8075 pounds)

(Editing by Alexander Smith, Greg Mahlich)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22