Bid looms for Terry Smith’s London bank
Stockbroker Collins Stewart gets a £250m takeover approach from mystery bidder
Small cap stockbroker Collins Stewart, founded by City veteran Terry Smith, has received a preliminary takeover approach from a mystery bidder thought to be at between 110p-115p a share.
Shares in Collins Stewart, which have lost nearly half their value in the last six months, jumped nearly 30 per cent following the confirmation to close at 99p, giving it a market valuation of £244.9m.
People close to the broker said the interested party was a well funded non UK company looking to get into the European and UK markets.
Australian bank Macquarie has been tipped as the most likely bidder, though Japanese bank Nomura, which reportedly held preliminary takeover talks with Collins Stewart in December last year, and Indian brokerage Religare were also named as potential suitors.
Macquarie declined to comment, but it is understood that the bank is keen to create a London-based broking division in a bid to expand its international business. Nomura, which has weathered the credit crunch relatively well compared to many of its peers, also declined to comment.
Collins Stewart, which is one of the biggest underwriters of listings for small to medium sized firms on Aim, is believed to have had a number of approaches over the past year, but yesterday’s was serious enough to force the company to issue a statement. Analysts said the announcement could flush out other bidders. Collins Stewart will publish its interim results on Tuesday.