New Star shares up on hopes of rescue

New Star Asset Management has had up to 10 takeover offers, with the front-runners looking to part with up to £100 million for the fund manager.

The group's shares put on 1p to 4p today after a statement saying it had received "a number of expressions of interest" which would allow it to consider selling the group as a Plan B to the debt-for-equity swap currently being worked on, with banks holding its £240 million of debt.

The current restructuring plan would hugely dilute existing shareholdings. In today's statement, New Star added that one potential bidder would be interested in a deal after the debt restructuring.

Weekend press reports said Schroders was looking at a bid. It is not believed to be the post-restructure bidder.

New Star cautions it is not certain any of the potential bids will give current shareholders a "significant return, if any". The banks that could end up owning most of the business are keen for a quick end to the exodus of New Star's £12 billion of funds under management.