Clock ticks for Cazenove

THE future of stockbroker Cazenove is likely to be determined within the next five to six weeks, according to banking sources.

The group, whose clients include the Queen and David Beckham, is in 50-50 joint venture talks with Wall Street giant JP Morgan.

Chairman David Mayhew and fellow partners are going through the proposals with a fine-tooth comb.

They want to be 100% certain the suggested model will work and not damage the firm's reputation for impartiality.

The talks are not exclusive and speculation has resurfaced that Citigroup is ready to gatecrash with a 550p-a-share bid, though the suggestions are said to have raised eyebrows at the US group.

Other suitors have included Lehman Brothers, which backed away from a £500m-600m bid, and Barclays.

Cazenove has not ruled out resurrecting earlier plans for a stock market float.

Internal dealings valued Cazenove shares at 350p in March, but the value is likely to have risen significantly since then.

Recent first-quarter figures showed revenues up 49% to £71m and a rise in pre-tax profit from £2.1m to £14.8m.

External shareholders, including Axa, Standard Life, L&G, M&G, Morley and 3i, own 10.2%. Current and former partners and employees hold the rest.

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