MORE suitors have emerged for the embattled Kleinwort European Privatisation Investment Trust (Kepit).
The board has now asked for firm proposals on the future of the £500 million sterling trust.
"We have now received approaches from nine parties," said a spokesman for Merrill Lynch, which is advising the trust.
On Tuesday, the independent board of the trust, chaired by Senator Shane Ross, said seven proposals had been put forward, including a hostile bid from the TR European Growth Trust and an initial approach from Deutsche Morgan Grenfell Trust Managers to take over the management.
Mr James Fox, managing director of Deutsche Morgan Grenfell Trust Managers, said he had been asked by the board to present further proposals.
"We made an initial approach at the weekend and the board has asked us to expand on those proposals," he said.
Deutsche Morgan Grenfell's (DMG) proposals do not amount to a hostile bid for the fund, but it believes it could do a better job of managing the investments than Kleinwort Benson Investment Management (KBIM), the incumbent manager.
"The trust needs a different investment manager. We would look at broadening the restricted mandate on privatisations of the trust and include eastern Europe," Mr Fox said.
Apart from KBIM, Deutsche and TR European, suitors for Kepit are remaining in the shadows but Fidelity, Foreign & Colonial and Schroders are all thought to be in the running. One fund manager, Invesco has ruled itself out.
"It seems that the board is using the drip feed of proposals to put the frighteners on KBIM," said one fund manager.
The DMG proposals entail moving the trust away from its narrow focus on European privatisations, which failed to deliver promised riches when Kepit was launched in 1994.
Senator Ross said ruefully at the shareholder meeting on Tuesday that shareholders had expected a bonanza and "with the benefit of hindsight, 1994 was probably not the best time to launch such a fund".
Kepit holds a 3.5 per cent stake in Greencore, worth about £20 million, but Greencore has been one of the few real successes in Kepit's portfolio.
