* Posts pretax profits pf 210 million pounds sterling
* Total 2010 dividends rise to 7p a share from 6p
* Says markets still pose "many challenges"
* Gartmore acquisition "very, very unlikely" - CEO
(Adds CEO quotes, market reaction, share price)
By Cecilia Valente
LONDON, Nov 30 (Reuters) - Aberdeen Asset Management is "very, very" unlikely to make a move for rival Gartmore, its CEO said on Tuesday, after the acquisitive funds house trumped forecasts with a 147 percent rise in pretax profits.
Propped up by record new business inflows in equity and emerging market products, Aberdeen posted 210 million pounds ($327 million) full-year pretax profits ahead of the 184.7 million pound consensus forecast from 19 analysts polled by Thomson Reuters I/B/E/S.
Chief executive Martin Gilbert said the group was focused on strengthening its balance sheet and organic growth, quelling speculation it could make an offer for its embattled peer.
"I think it is very clear we are very, very unlikely to purchase Gartmore. I think they are a good company and I think the star culture doesn't really fit with our team-based approach," Gilbert said in a conference call.
"I am sure they would rather merge with someone else who is more akin to they way they manage money, it is more Jupiter, Henderson-type business," he added.
Gartmore put itself for sale earlier this month, hit by "star" managers defections and outflows.
In the last five years Aberdeen has taken over the management operations of rivals such as Deutsche Asset Management, Credit Suisse Asset Management and this year RBS Asset Management.
CHALLENGING MARKETS
Aberdeen attracted net inflows of 2.6 billion pounds, partially reversing the net outflow of 10.7 billion pounds the previous year, mainly due to demand for emerging market and global equities products.
Investors were also showing demand for emerging market debt, along with Asian fixed income and U.S. equities.
Assets under management rose to 178.7 billion pounds, up from 146.2 billion pounds a year earlier and 168.8 billion pounds at the end of August. This compares with the forecasts of brokers Peel Hunt and Singer Capital Market, which were 171.4 billion pounds and over 172 billion pounds, respectively.
Aberdeen said it had seen 44 billion pounds in outflows from low-margin products such as fixed income, where it has posted poor performance in the last two years, and money markets, as investors' risk appetite revived. It added, however, that the rate of withdrawals had slowed as the year progressed.
"Looking ahead, financial markets still pose many challenges and uncertainties, but we are confident that ... we are well placed to continue our growth," said Gilbert.
Aberdeen shares traded up 0.61 percent at 180.1 pence at 0957 GMT, outpacing the FTSE 100, which us broadly flat.
JP Morgan Cazenove called the results "very strong", rating Aberdeen shares 'overweight'.
"We believe that the strength of performance, and a substantially higher than anticipated AUM figure at the period end, will see upgrades to consensus," it said in a note.
Oriel Securities retained a "buy" rating, while analysts at Singer said the results "exceeded great expectations", giving it a "buy" recommendation. Aberdeen said it would pay total dividends of 7 pence per share for the full year, up from 6 pence per share last year and slightly ahead of the 6.7 pence Thomson I/B/E/S consensus.
It said it repaid all short-term bank debt in August and would move to a net cash position next year after cutting its net gearing ratio to 0.6 percent from 17 percent in 2009. ($1=.6417 Pound) (Editing by Sinead Cruise and Louise Heavens)