Cazenove 'could sell stake to bank'

The UK’s oldest independent stockbroker was today being linked to a deal involving the sale of a 50% stake to US bank JP Morgan Chase.

Cazenove, which acts as stockbroker to the Queen, is said to have agreed to sell the holding for £100m (€144.8m) in a move that allows it to retain its independence but gain access to JP Morgan’s product range and network.

The future ownership of the 181-year-old firm has been open to speculation since it announced in May that it was hoping to float on the London Stock Exchange but that a number of companies had also made approaches.

Lehman Brothers and Barclays Bank have both been linked to interest in the stockbroker, which advises nearly half of FTSE 100 companies and employs 1,000 staff in nine countries. It declined to comment on the speculation today.

The Financial Times said the draft agreement allowed the parties to revisit the ownership structure in a few years, with both having the option to sell out.

JP Morgan would also lend Cazenove up to £300m (€434.4m) to finance payouts to external shareholders and former partners, today’s report said.