March 18 (Reuters) - Clients and investment staff at Janus Henderson are urging the money manager to reject a takeover bid from Victory Capital in favor of a lower-priced deal from Nelson Peltz's Trian and VC firm General Catalyst, the Wall Street Journal reported on Wednesday.
The bidding war for the $493 billion asset manager underscores ongoing industry consolidations, as firms pursue greater global scale to attract investor inflows.
Rival Victory Capital on Tuesday sweetened its $8.6 billion cash-and-stock
offer for Janus, ratcheting up efforts to derail the Peltz-led deal.
Clients, including senior officials at wealth-management units of Morgan Stanley and Citigroup, have expressed discomfort to Janus executives about Victory's plans and potential cost cuts, the WSJ Journal said, citing sources.
Janus said its committee will review the revised proposal but continues to recommend shareholders approve the Trian-led deal at an April vote, which it agreed to in December.
The companies involved did not immediately respond to a Reuters' request for comment.
Some clients told Janus that a deal could lead to an exodus of portfolio managers, the WSJ reported, adding that a group of top managers have also threatened to resign if the company proceeds with the sale.
Victory told WSJ that it has not yet shared details on a combined company, including plans to retain clients and employees, while Janus said client feedback has raised "serious concerns" about securing approval.
(Reporting by Fabiola Arámburo in Mexico City; Editing by Sherry Jacob-Phillips)
