Duffield's fury at Jupiter snub

MAVERICK fund manager John Duffield has launched an audacious bid to buy back Jupiter, his old investment house - and has pledged to top any rival offer by up to £100m.

But Jupiter's German owner, Commerzbank, refused to consider his approach and took less than 24 hours to throw out the bid from Duffield's New Star Asset Management. It is understood that Commerzbank had already instructed its adviser Goldman Sachs to dismiss any offers from the pugnacious investment guru, or any venture capital buyer.

Duffield, 62, has secured backing from HSBC for his proposed swoop on Jupiter. He also claims the support of Jupiter's top ten institutional clients and boasts the backing of 100 of its 400-strong staff. In a letter seen by Financial Mail, Duffield told Commerzbank that he would pay 'not less than £50m more than the highest credible offer' it receives for Jupiter.

But he is so determined to regain control of the investment house, which he left after a bust-up with Commerzbank two years ago, that he is prepared to pay up to £100m more than any serious rival bid.

New Star is attempting to boost its chances of success by assuring Commerzbank that Duffield owns less than 10% of New Star and that its board is 'strong and independent'. Chief executive Howard Covington said: 'Past events should not be grounds for prejudice against a fully valued cash offer from us.'

New Star complains that it has been refused sales information that has been sent to other potential buyers. And it believes that Commerzbank has issued instructions not to pass on details to Duffield or sell the business to him at a later date.

This latest twist in the long and bitter battle is likely to outrage shareholders in Commerzbank. It paid £800m for Jupiter, in which it first took a stake in 1995. As recently as May 2000, when Duffield was still in charge, an independent survey valued Jupiter at almost £2 billion. Now City sources say the bank may receive as little as £300m.