Wealth manager Perpetual Ltd (ASX:PPT) is expecting underlying profit after tax of between $35 million to $40 million in the current half year to the 31 December, if equity markets remain stable.
Chairman Bob Savage, who will soon step down from his role, says after a short period of weakness in the second quarter of this year markets have trended up although in a volatile fashion.
Adding that, investor sentiment is still cautious and industry flows remain weak making it difficult to determine the market outlook.
Perpetual has also confirmed that its chairman-elect, Peter Scott, will lead discussions with US private equity firm Kohlberg Kravis Roberts in regards to their takeover proposal.
Yesterday Perpetual said the offer undervalued the company but has vowed to work with Kohlberg Kravis Roberts to explore alternative options.
Perpetual earned a $90.72 million profit in fiscal 2010.
PPT Price at posting:
$37.90 Sentiment: None Disclosure: Held
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