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Treasury Group considers Wilson HTM Asset Management

Monday’s Financial Review reported Treasury Group (ASX: TRG) has approached several major shareholders of Wilson HTM Asset Management (ASX: WIG) with an offer to acquire their holdings by way of options or outright purchase at an indicated price of 42c per share.

In statements to the ASX, Wilson HTM confirmed an approach had been made and Treasury Group has advised that “discussions have now ended and there is currently no association or agreement in place”.

It’s unlikely this is the end of the matter. Treasury Group would have an interest in the $12.3 billion in funds under management, not the broking division.

Treasury Group has substantial equity interests in a number of small to medium sized asset management companies and also undertakes the administrative and compliance roles for these businesses. Current funds under management total $17.1 billion. Selling at $8.10 per share, Treasury Group has no debt, a 2013 price earnings ratio of 18 and a 5% yield.

Wilson HTM is a financial services company based in Brisbane. Trading results over the past few years have been lacklustre, with an improved loss of $1.6 million in 2013. Directors expect 2014 earnings to be positive.

With the experience of a farcical takeover attempt by Mariner Corporation earlier this year, the Wilson HTM history (established 1895) may be coming to an end.

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Motley Fool contributor Peter Andersen owns shares in Treasury Group.

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