Bancorp opens takeover fund

Bancorp yesterday unveiled a novel investment fund to target the opportunities created by corporate takeover plays in Australia and New Zealand.

The investment bank is seeking $20 million from retail investors for the Bancorp Merger Arbitrage Fund in an offer that opened yesterday and closes on March 19. Investors are being offered $1 units.

The fund will try to make money by buying into companies subject to publicly announced takeover offers.

The aim is to capitalise on the gains that can come when takeover offers are increased or takeovers become contested.

Bancorp managing director Craig Brownie said he believed it was the first New Zealand fund of its type.

A Bancorp management company will reap a 2.5 per cent annual management fee.