JP Morgan Eyes Up Cazenove

10 years ago

The Observer newspaper has revealed that secret talks have taken place between representatives of JP Morgan and Cazenove and that the US bank is considering a £2bn bid for the British stockbroker, who, it is claimed, is considering its position.

Cazenove dissolved its 178 year old partnership structure last year and planned to sell shares to the public late in 2002. The broker recently announced that the planned sale was on ice due to current adverse market conditions. Takeover rumours concerning the highly respected institution have been rife ever since. Goldman Sachs and Merrill Lynch are thought to have been taking a keen interest in the broker.

JP Morgan declined to comment on the story, although Cazenove chairman, David Mayhew, is thought to be against any sale and intent on pursuing the share sale option.

Although employees at JP Morgan Chase will no doubt not look forward to yet another acquisition - Chase veterans will have lived through the Chemical, Flemings and JP Morgan deals - the purchase of Cazenove would plug a gap in the bank's equity broking operations in Europe.

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