While an Amvescap
take over has been grist for the rumor mill since even before CI Fund Management made an unsolicited offer last summer, at least one Wall Street analyst firm thinks it shares are already too rich.
wrote in its latest coverage that Amvescap shares are "fundamentally overvalued" based on cash flow figures published by Bisys' Financial Research Corporation.
"Third quarter numbers from Amvescap due Thursday are unlikely to make for pleasant reading," says the report. Amvescap shares trade on the London exchange and were recently priced at 335.75p.
Toronto-based CI may agree with Bridgewell as its CEO recently said that the fund firm sold all of its Amvescap shares after its hostile takeover offer was nixed by Amvescap's board.
The analysis should catch the attention of other firms that are considering making a run at Amvescap.
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