Yahoo Finance Rathbones confirms takeover talks with Speirs & Jeffrey
Wealth manager Rathbone Brothers has confirmed that it is in talks with Scottish stockbroker Speirs & Jeffrey about a possible takeover.
The FTSE 250 wealth manager and private equity firm Permira are preparing a bidding war for the Glaswegian stockbroker, valued at roughly £200m, The Sunday Telegraph reported.
“Rathbones regularly assesses various acquisition opportunities in line with its stated strategy and accordingly confirms that discussions between Rathbones and Speirs & Jeffrey in relation to a possible acquisition... are taking place,” the wealth manager said on Monday.
It added that it had not made a binding offer for the Scottish firm and that there was no certainty that would happen, but that it would make further announcements as appropriate.
An acquisition of Speirs & Jeffrey could land its 10 partners a windfall of up to £20m each. Its highest paid director earned a salary of £490,000 last year.
The 112-year-old stockbroker and investment manager manages around £5.5bn of assets for individuals, families, trusts, charities and pension funds and is run by fund manager Russell Crichton, who took on the chief executive role seven years ago. The firm posted revenues of £25.3m and pre-tax profits of £9m for the year to May 10.
The business is understood to have appointed advisers at Spencer House Partners, an M&A boutique founded in 2006, to help it find a buyer.
The discussions come at a time of consolidation in the sector, which has been struggling with pressure on fees and costs associated with new regulations such as Mifid II and increased competition. City sources expect a slew of M&A deals in the sector in the months ahead.
