Bridgeport management fail in buy-out bid

Bridgeport Advisers and Asset Managers’ senior staff have failed in their management buy-out bid for the Sydney-based advice firm after the company was sold yesterday to an unnamed bidder.

Management had sought to takeover the business after it was forced into administration following a decision in October by its major shareholder, Zurich Financial Services, to invoke a contractual clause that allowed the group to be sold.

“Final offers were considered on Friday and the decision was taken yesterday and all I can tell you is that the business has been sold and it wasn’t to management,” Michael Chan, a manager with administration firm Jirsch Sutherland, which ran the tender, said.

According to Chan, the winning bid was not an institution. However at this stage, for privacy reasons he merely confirmed that the successful bidder was one of the final six parties that had signalled their wish to buy the group.

Chan also refused to reveal how much influence Zurich, which held a 55 per cent stake in the business, had in the final decision.

The Bridgeport staff bid was overlooked despite the administrator acknowledging late last month that a management buy-out would have been preferable, after Bridgeport chief executive Justin Hooper confirmed that he and chief operating officer Brian May had put an offer on the table.