LONDON, (Reuters) –Elliott raised its stake in Brewin Dolphin to 5% (OTC), a British wealth management company that is being offered by Royal Bank of Canada on Friday.

Elliott had a 5.2% stake as of May 12, according to regulatory filings. Elliott had earlier in the week declared a stake of 2.42%.

Brewin Dolphin’s shares have surged 61%, to 512pence a share after RBC made their 515-pence offer March. The firm is now valued at 1.6 billion pounds ($1.95 Billion).

Brewin reported this week a 2.3% increase in adjusted profit before taxes for the first half of 2008 and stated that the RBC acquisition was likely to be completed by the end the third quarter.

Two sources in the banking industry said Elliott might be anticipating an offer for Brewin. One added that the wealth manager was still undervalued at current price.

Elliott also holds stakes in SSE (LON) and GlaxoSmithKline, a drugmaker (NYSE:), as well as homebuilder. Taylor Wimpey (LON:) Refused to comment

As retail investment increases, wealth managers and investment platforms will be in high demand in Britain.

JPMorgan (NYSE 🙂 purchased digital wealth manager Nutmeg, and asset manager abrdn acquired interactive investor, Dec 2021.

($1 = 0.8189 pounds)