Standard Life head warns against opportunistic takeovers

Standard Life Investments, the UK's fourth largest pension fund manager, was one of the few Tomkins shareholders to vote against the Onex-led buyout of the company in July.

Cumming claims that the buyers exploited a strained market to lower Tomkins' price tag. He also advised shareholders of other UK corporations to resist selling their assets too cheaply, specifically to private equity houses looking to profit from a currently gloomy market.

Cumming's view was backed by Panmure Gordon analysts, who agreed that the offer was "too low and would undervalue Tomkins' growth prospects, its cash flow generation and its margin achievement."

This stand, in conjunction with the current lack of appetite for private equity-backed flotations, marks a rising hostility towards the industry among some institutional investors.

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