Jilted Lehman plans aggressive expansion in Europe
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.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies