Schroders eyes a takeover of Cazenove
Saturday 23 March 2013
Two of the oldest names in the City look set to come together after fund management group Schroders said it is considering a takeover of its smaller rival Cazenove Capital.
The deal could mean huge windfalls for current and former staff involved when it demerged from JPMorgan Cazenove in 2005. Schroders manages £212bn of funds and Cazenove £18.7bn.
Schroders recently lost a key funds team, led by Richard Buxton, to Old Mutual.
Analysts believe the company may have to pay up to £600m for the deal.
Cazenove's most comparable rival, Rathbones is valued at around 3 per cent of its assets under management, while peers like Jupiter Fund Management trade at about 5 per cent of assets.
"Schroders certainly needs to do something given the loss of Richard Buxton and other fund managers. Clearly they will need a high-quality UK franchise," said Numis analyst David McCann.
Cazenove, established in 1823, grew to become one of the top stockbrokers for the well heeled of London by the 1940s and reportedly counts Queen Elizabeth II among its clients.
Last month Schroders said its assets had risen to £212bn following strong inflows during the fourth quarter.
- 1 Fifty Shades of Grey trailer: First look at Jamie Dornan as Christian Grey
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 50 books for students to read this summer: From Ernest Hemingway to Gillian Flynn
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Rebecca Hall on her film career so far: ‘I’ve played too many repressed neurotics’
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£300 - £350 per day: Orgtel: Job Title: Business Analyst Rate: £300 - £350 per...
£60000 per annum: Harrington Starr: Trade Desk Specialist (Linux, Windows, FIX...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£70000 - £90000 per annum + Job Satisfaction: Harrington Starr: Project Manage...