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 Hair loss explained: How and why men go bald
- 2 Game of Thrones season 6: Jon Snow theorists believe the Stark may have a twin sister
- 3 Artist takes LSD, draws herself over different stages of the 9-hour trip to show its effects
- 4 A pint of water every day is the key to losing weight, scientists say
- 5 Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
Most expensive city to live in for expatriates: Luanda, Angola takes number one spot with Hong Kong and Zurich in top three
Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
Irish tourist filmed fighting with shopkeepers in Turkey says they 'messed with the wrong man'
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal get peerages
Moody neurotics are more likely to be creative geniuses, study says
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£20000 - £25000 per annum + competitive + incentives + uncapped comms: SThree:...
£13000 - £25000 per annum: Recruitment Genius: Would you like to be part of a ...
£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...
£25000 per annum + benefits: Ashdown Group: A large financial services company...