WINDSOR, Conn. (HedgeWorld.com)–Following a series of administrator-related acquisitions, SS&C Technologies Inc. is in a bidding war for Toronto-based Financial Models Co.
FMC is an investment management software company that is known for its integrated portfolio management, trading and accounting software packages. Its FMC Pages software is used for client relationship management by some hedge funds (see ).
SS&C officials confirmed that they have made a bid for FMC of C$17.70 (US$14.37) a share, which tops that of Linedata that in the last month offered C$14.85 (US$12.06) a share. The proposal rests in the outcome of pending litigation in the Ontario Court of Appeals between FMC and 1066821 Ontario Inc. owner Stamos Katotakis, who has a separate offer on the table.
The court case centers on a previous decision that said that FMC shareholders BNY Capital Corp. and William R. Waters and companies controlled by Mr. Waters are contractually obligated under the shareholders agreement to sell their shares to 1066821 Ontario Inc.
The Ontario Court of Justice decided that BNY and Mr. Waters’ shares, which represent 42% of the outstanding FMC shares, are under obligation to be sold to Linedata under significant shareholder lock-ups rather than Mr. Katotakis’s. Mr. Katotakis’s appeal to that decision will be heard on Feb. 22.