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IAM bids for whole of BluMont

Integrated Asset Management (IAM) has announced plans for a full takeover of Toronto-based hedge fund company BluMont Capital, a company in which it already owns a 46 per cent stake.

The asset management group hopes to acquire all of the remaining BluMont common shares in exchange for a piece of the IAM company – a deal set to add a premium of about 39 per cent to each share.

Commenting on the proposed deal, Victor Koloshuk, chairman and CEO of IAM said that he believed that the transaction would be of benefits to both companies.

"The shareholders of BluMont will receive a dividend paying stock with enhanced liquidity in a more diversified business upon the successful closing of the transaction," he said.

"It will both simplify the capital structure as well as result in significant savings."

In a statement, BluMont confirmed that it would be reviewing the offer.

Specializing in hedge funds, BluMont is one of Canada's leading providers of alternative investment products, with some $758 million worth of assets under management.

IAM, meanwhile represents a much larger force, with some $2.67 billion under its management in hedge funds and other investment products.