Shares in Gartmore fell sharply on Monday after the troubled UK fund manager said that it is considering a takeover proposal from local rival Henderson at a discount to its recent share price.

Gartmore, which is struggling to recover from the loss of key fund managers in recent months, said Henderson had made a proposal at a slight discount to its December 16 closing share price of 99 pence. Press reports have suggested the offer could be around 95 pence.