The City stockbroker managed by Bob Diamond, the previous Barclays chief, is plotting a merger with one in all its listed rivals as a slowdown in company exercise drives a seek for greater value financial savings.
Sky News has learnt that Panmure Gordon, which Mr Diamond’s Atlas Merchant Capital took a majority stake in in 2017, has approached finnCap Group a few potential tie-up.
Discussions between the 2 corporations are mentioned to be at an early stage, and there was no certainty on Monday night that they’d lead to a deal.
A merger of Panmure and finnCap would carry collectively two of the best-known gamers within the space of the London stockbroking business which focuses on advising small- and mid-cap corporations.
FinnCap has endured a troublesome interval, dropping Sam Smith, its distinguished chief govt and one in all comparatively few feminine City bosses, in the course of the summer season.
Its shares have slumped by almost two-thirds over the past 12 months.
At Monday’s closing share value of 13.5p, it had a market capitalisation of simply £24m.
Panmure itself additionally was once listed on the London inventory market, and it was unclear whether or not a deal would see it launch a reverse takeover of FinnCap that might see it return to being a listed firm.
Mr Diamond’s transfer to take management of Panmure in 2017 got here 5 years after he stepped down as Barclays chief govt simply days after it was fined for manipulating the Libor interbank fee.
Since then, he has parachuted in Rich Ricci, a former Barclays colleague, as Panmure’s CEO.
Its different shareholders embrace a automobile backed by the Qatari royal household.
Panmure reported in May that it had turned a revenue for the primary time since Mr Diamond took management.
A dearth of preliminary public choices and takeover exercise within the City this 12 months have pressured funding banks to start slicing their cost-bases.
At the weekend, it was reported that finnCap was making 10 of its 150-strong workforce redundant, whereas The Sunday Times mentioned that Numis, Peel Hunt and Zeus Capital had been additionally trimming jobs.
Other broking corporations are additionally anticipated to take part in business consolidation, together with WH Ireland, which is beneath siege from an activist shareholder.
Atlas Merchant Capital and finnCap each declined to remark.
Source: information.sky.com”