All doubt about it must surely be set aside now that the media mogul has parachuted his admittedly talented and experienced daughter into a senior position at Britain’s most profitable TV company.What other shareholders – Granada, Chargeurs and the big City institutions – will make of it is anyone’s guess. The last few years have been difficult for Gartmore but that should not belittle a remarkable and entrepreneurial record. Continuing that in the very different climate of a large clearer will require all the lightness of touch Wanless can manage.A family affair for Mr MurdochWho really runs BSkyB? Rupert Murdoch of course, notwithstanding the fact that he now owns only 40 per cent of the company and the two other media companies that sit alongside him on the share register. Invesco is about the only other fund manager of size that it is still possible to buy.To all intents and purposes yesterday’s deal amounts to a reverse takeover of NatWest’s investment management outfit by Paul Myners and his team, who fill all the top posts. Anyone acquiring MAM, currently trading at around 16.5 times historic earnings, is still going to have to pay a full price It also has scarcity value on its side. It even went so far as to pay Nationsbank to wave its right of first refusal on the company. Mercury Asset Management’s shares dipped 7p yesterday on disappointment that a strong suitor is now paired off, and market judgement that Gartmore’s price was well below sky-high expectations.

Mercury is valued at 2.5 per cent of funds under management.But comparisons are risky There was an element of the distress sale in Gartmore Indosuez needed the cash. Stripping out the anomolies gives a more modest factor of lower than 16 times historic earnings. Using another yardstick – percentage of funds under management – the price also looks undemanding at 1.9 per cent.Indeed, NatWest may have established a new yardstick by paying so modestly. But the rich prices then on the table cut Wanless’s appetite. In the end, NatWest’s caution and patience have been rewarded. When the talks stalled, and Indosuez in effect had to re-advertise, the UK clearer returned to the table and clinched the deal at pounds 475, instead of the pounds 600m the market had been talking about at the outset Fund managers do not come cheaply. NatWest has paid a fair price for a deal with lots of potential for combining Gartmore’s brand name and fund management expertise with NatWest’s extensive retail distribution network.
Gartmore went for 20 times 1995 earnings, but this figure is based on an atypical year.

NatWest did make a few serious attempts, notably with Barings and SG Warburg, that failed to come to anything. It did also show a close interest in Gartmore when the French parent, Indosuez, put the fund management group on the market last September. The injury was suffered on holiday.8 The lowest claim was pounds 1.41 for a damaged door. The award covered the repair cost, less the premium for accidental damage cover, which had not been paid.. Ooof! NatWest has finally done a deal.