| CATEGORY: NEWS AND ANNOUNCEMENTS |
JP Morgan ties up Cazenove buy-out |
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Thu 19 Nov 2009
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LONDON (SHARECAST) - US merchant bank JP Morgan Chase Cazenove has bought out the half of 190-year old blue-blooded stockbroker Cazenove it does not own for £1bn.
Current and former staff at JP Morgan Cazenove will share £740m under the deal, with chairman David Mayhew pocketing £21m. Past and present employees hold 90% of Cazenove shares.
JPMorgan is paying 535p for each share, or 21 times 2008 earnings. The privately held shares were last valued at 260p in internal dealing earlier this year.
The JPMorgan Cazenove name will be retained following the deal, which is expected to be completed early in 2010.
David Mayhew remain chairman, while chief executive Naguib Kheraj will overseeing the integration in a short-term role but could leave the company once that job is complete, according to reports today.
"We see this as the natural evolution of this partnership with a lot of opportunity to do more both in corporate finance and in equities," Kheraj told reporters on a conference call.
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