Stephen Lansdown, co-founder of Hargreaves Lansdown believes the takeover bid by private equity groups is boosting the company’s share price after years of decline.
“It’s woken the stock up,” Lansdown said in an interview with Bloomberg, noting that the bid highlights the firm's value.
The £4.7 billion approach from CVC Capital Partners, Nordic Capital, and a subsidiary of Abu Dhabi Investment Authority lifted the stock by 14% to 1,120 pence per share.
The bid, which the board rejected, was made in late April.
Lansdown, who holds a 5% stake worth nearly £270 million based on the offer, welcomed the recognition of the company’s value but questioned if it was sufficient.
Peter Hargreaves, another co-founder with a 19.8% stake, valued at approximately £925 million, has been critical of the company's management and is open to the take-private bid.
The consortium must declare by June 19 whether it will make another offer.
Lansdown expressed confidence in the current management under CEO Dan Olley and Chairman Alison Platt, noting improvements since the previous leadership. “They’re making the right noises,” he said.