The hidden opportunity in these demergers

Demergers can be dangerous things for investors. But if you understand what's really behind them, they can help you spot stocks with serious growth opportunities. Bengt Saelsensminde explains how.

This weekend I was caught up in an interesting debate with a good friend of mine. Paul's business is about to take over a competitor. And the question is should it be a merger, or acquisition?

It's a potentially devastating dilemma. If he merges the new business with his existing operations and things start to go wrong, then he risks losing the whole lot.

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Bengt graduated from Reading University in 1994 and followed up with a master's degree in business economics.

 

He started stock market investing at the age of 13, and this eventually led to a job in the City of London in 1995. He started on a bond desk at Cantor Fitzgerald and ended up running a desk at stockbroker's Cazenove.

 

Bengt left the City in 2000 to start up his own import and beauty products business which he still runs today.