Billionaire hedge fund manager Bill Ackman has seen his surprise bid for Sculptor Capital shut down by the fund.
Ackman, alongside hedge fund giants Boaz Weinstein and Marc Lasry, had offered to buy Sculptor’s class A shares for as much as US$12 each, according to the Wall Street Journal, outdoing rival bidder Rithm’s US$11.15.
This was in spite of Sculptor’s board members unanimously agreeing to Rithm’s offer last month, which would amount to a US$639 million takeover.
“Though this latest bid’s headline valuation is higher than the Rithm transaction, this proposal only includes committed financing for less than half of the amount required to consummate the transaction,” Sculptor said in a Sunday statement.
“This bidder has not demonstrated adequate committed funding for any of its bids,” the statement added.
A legal battle with founder Daniel Och has seen Sculptor – formerly among the world’s largest hedge funds – begin exploring a sale last year.
Though Sculptor reassured Rithm’s buyout would likely be completed toward the end of this financial year, Ackman’s bid marks the latest twist in the sale of the investment firm.