Rathbone brothers and permira are preparing a bidding war for Scottish stockbroker Speirs & Jeffrey in a battle of absorption by net partners Glasgow firms a multimillion-dollar jackpot.
Rathbones, the wealth Manager and private equity business permira is interested in approximately £200m sale for 112-year-old business, sources have told the Telegraph. The decision on the tender winner is expected in the coming weeks.
This step was taken less than a year after the pair were involved in the tender after the wealth Manager Tilney, which is majority owned by permira, tried to enter negotiations between Rathbones and Smith & Williamson.
Both lost after the business said it will instead hold their shares on the stock exchange. Representatives of the two companies declined to comment on the process Speirs & Jeffrey.
Under the code name “project Argus”, the sale of the company can put its ten partners a bonanza of up to 20 million pounds each. Its highest paid Director earned in the last year’s salary of £490,000.
“Since we were founded, we have consistently followed a policy not to comment on the inevitable speculation that arises from time to time”, – said the representative of the group.
Founded in 1906, a stockbroker and investment Manager reported revenues of £25.3 m and profits before tax of £9 million for the year to 10 may.
It manages around £5.5 billion of assets for individuals, families, trusts, charities and pension funds and Fund managers Russell Creighton, who had assumed the role of chief Executive seven years ago.
The business is understood to be appointed advisers to the Spencer house partners, an M&a boutique founded in 2006 to help him find a buyer.
The move is the latest example of consolidation in a sector that for many years of fighting against the growing competition, pressure on fees and costs associated with new regulations such as mifid II, which. City sources expect a lot of mergers and acquisitions in the sector in the coming months.