The second biggest shareholder in F&C Asset Management is to slash its stake in the UK fund manager by almost half in a surprise move that will open up its closely-held shares to new investors.

Dutch insurer Eureko merged its fund management arm with UK peer Friends Provident's Isis Asset Management nearly three years ago, and although Eureko sold a stake in the combined company in the wake of the tie-up, the Dutch group retained a 19.6% share in the new-look F&C.