Lehman Brothers, the US bank which recently lost the battle to take over blue-blooded stockbroker Cazenove, is planning an aggressive expansion in fund management in Europe.
This is likely to include a number of acquisitions.
Lehman is understood to be in talks to buy the 80 per cent of hedge fund group GLG Partners that it does not already own, for around £1bn.
However, it is understood to be looking for a more conventional fund management business too. Last year it paid $2.6bn (£1.4bn) for fund manager Neuberger Berman in New York, a move that followed a long search for an appropriate acquisition.
Lehman recently hired Robert Sargent from Morgan Stanley Asset Management to head its nascent European business. A spokesman said he was studying the market and would decide how best to expand Lehman's presence in due course.
If Lehman had bought Cazenove, it would have acquired a fund manager with £7.4bn under management as well as the well-regarded stockbroker.
Lehman bid £500m for Cazenove with a potential further £250m depending on performance.
However, Cazenove preferred an offer from rival US bank JP Morgan, which is paying an initial £100m for a 50 per cent stake in the broker. The fund manager is not included in the deal and may be sold separately, with Lehman a potential bidder.
- More about:
- Debt Market (bond Market)
- Investment Banks
- Mergers And Acquisitions
- New York City