ONE OF the City's best-known asset managers has accused a Wall Street private equity firm of "ram-raiding" the London stock market, after the US investor pulled off an ambitious swoop for a Cambridge-based tech firm.

Columbia Threadneedle claims to have been blindsided by KKR's successful $396m (£313m) move for the AIM-listed IQGeo last week, despite its 13 per cent stake in the tech firm.

"Although the financial metrics of KKR's offer are very high, we do not believe it fully realises the long-term growth potential of IQGeo," said James Thorne, UK equities fund manager at Columbia Threadneedle, in an interview with The Sunday Times.

The heavyweight asset management firm feels particularly aggrieved because even though the bidding process, which is being overseen by The Takeover Panel, started months ago, it only became aware of KKR's move days before the recommended takeover was announced by IQGeo's board.

"IQGeo is a great example of the kind of company we look to invest in," Thorne said. "KKR has seen the same potential in the company we did. IQGeo is now well-funded, generating significant revenue and profit growth with the potential to become many multiples of its current size."

A spokesperson for IQGeo told The Sunday Times that the KKR deal, "represents highly attractive value".

(c) 2024 City A.M., source Newspaper