Henderson is on the brink of sealing a deal to buy New Star, the troubled asset management group founded in 2000 by John Duffield, for £115m for a mix of shares and cash.

The acquisition will follow the completion of the debtfor-equity swap agreed last month between New Star and its lenders.

Henderson is expected to announce today it is paying about 2p a share, or £5m, in cash for New Star’s equity and a further £110m in a mix of cash and shares to the group’s banks, led by HBOS.

Henderson, which has about £50bn of assets and net cash of £160m, is expected to take on about half of the 310 staff at New Star, including the star fund managers, such as Richard Pease, said people close to the deal.

Financial Times