Jupiter in sight as Duffield settles row

MAVERICK fund manager John Duffield has settled a long-running legal battle with his old employer, Commerzbank. The move could smooth the path for his takeover offer for Jupiter, the investment house he founded.

As Financial Mail revealed last week, Duffield and his New Star Asset Management venture have said they will pay up to £100 million more than any other 'credible' offer for Jupiter, which has been put up for sale by Commerzbank. The acrimonious legal wrangle between the two sides arose over how a £100 million investment trust should be divided.

The trust, originally known as the Jupiter Investment Trust, was set up shortly before Duffield left his old firm to manage funds on behalf of Jupiter staff. They had picked up personal windfalls when Commerzbank took full control of the asset management firm in June 2000.

But Duffield, who personally owns 38% of the trust, took many of Jupiter's employees with him when he quit. Together they now own more than 50%.

The members of the trust who are still working at Jupiter want to bale out, but Duffield and his own staff want to stay. Duffield regards the settlement as a victory - not least because it will help his attempt to get his hands on Jupiter.

Commerzbank had flatly turned down Duffield's offer. It also refused to give him information and made other bidders promise not to sell the business to him.

Jupiter has agreed to pay all the estimated £450,000 costs involved with carving up the investment trust, called New Star Investment Trust. It will also pay a 'substantial amount' of Duffield's legal costs.