UK - Mike Balfour, chief executive officer of Glasgow Investment Managers, will leave the group following its £8.95m (€13.23m) acquisition by Aberdeen Asset Management.

Aberdeen announced yesterday it had acquired 50.1% of GIM from Sutherland Holdings Limited, the holding company set up by GIM founder David Williams.

The company said it will also acquire the remaining 49.9% interest from the GIM investment trust Shire Income plc.

A spokesman for Aberdeen today confirmed Balfour's will leave GIM following a failed management buyout (MBO) bid.

However, GIM's investment team, lead by Iain Lynn, will join Aberdeen while continuing to manage GIM's three investment trusts and the funds of a number of institutional clients.

It emerged earlier this week Balfour was attempting to lead an MBO, despite Aberdeen's advanced talks with Williams about the deal's terms.

A GIM spokesman told IPE on Tuesday Williams was looking to realise his investment in the company.

As a result, there were various options the firm could take, including allowing the existing management to buy the firm or a move which would see it sold to an external party.

The spokesman added: "Mike Balfour has been there for three years, and in those three years he has changed the shape of the company and moved it into a position where it is an attractive proposition and certainly he and his colleagues would love the opportunity to take it further."

However, a source close to the matter suggested a heavyweight such as Aberdeen would have more cash to win the deal.

Aberdeen announced: "The total consideration, to be satisfied in cash, for the resultant 100% interest in Glasgow will be £6.25m plus the value of net tangible assets, estimated at £2.7m."

GIM's total asset under management at July 31 were around £429m.

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