Former Barclays chief Bob Diamond’s investment vehicle is in talks to buy rival City broker Fincap for around £37m.
Sky News has learned that Panmule Gordon, which Mr Diamond’s Atlas Merchant Capital has controlled since 2017, has proposed an all-cash deal worth just over 20p per share.
The two companies have been in talks for several weeks, with Panmure on Tuesday announcing its firm intention to make an offer to finnCap, given a December 13th deadline.
A previous offer involving a separate deferred payment to Energise, a net-zero sustainability consulting firm 50% owned by finnCap, was rejected by a major investor, according to a source.
Insiders said the prospects for a merger between two of the city’s most prominent mid-cap investment banks still hang in the balance.
The slowdown in business activity is calling for more cost cutting among brokers, and the outlook for business activity in 2023 is weakened by the economic backdrop.
Fincap endured a difficult time, losing its prominent CEO and one of the relatively few female mayors, Sam Smith, over the summer.
The company’s shares were halved last year and are now worth less than £32m.
Panmure itself was also listed on the London Stock Exchange until it was acquired by Mr Diamond in 2017.
The move came five years after he stepped down as Barclays CEO.
Since then, he has parachuted in former Barclays colleague Rich Rich as CEO of Panmule.
Other shareholders include vehicles backed by the Qatari royal family.
Panmure reported in May that it was profitable for the first time since Diamond took control.
Other brokerage firms are also expected to join the industry consolidation, including WH Ireland, which is under siege from activist shareholders.
Spokespeople for Atlas Merchant Capital and finnCap declined to comment.
https://news.sky.com/story/diamond8217s-panmure-in-talks-about-16337m-takeover-of-finncap-12748897 Diamond’s Panmure in talks to buy finnCap for £37m | Business News