RBS closes in on deal for disposal of Hoare Govett

By Nathalie Thomas
Published on Monday 30 January 2012 00:00

ROYAL Bank of Scotland is close to striking a deal with US investment bank Jefferies to offload its Hoare Govett stockbroking arm for a token sum.

The agreement would prevent the closure of the venerable brand, which was put on the chopping block by RBS as part of the overhaul of its investment banking operations. However, it is likely to lead to the loss of as many as 75 jobs.

A source told The Scotsman that between 50 to 60 of Hoare Govett’s 125-strong workforce are expected to transfer to Jefferies as a result of the deal.

Jefferies is likely to only pay a nominal sum for the business, which came under RBS’s ownership following the disastrous takeover of Dutch Bank ABN Amro in 2007. It is believed RBS may also have offered some form of “dowry” to potential bidders willing to take the business off its hands.

Hoare Govett still advises a number of well-known mid-sized firms and some FTSE 100 companies. It recently acted for security giant G4S on its £5.2 billion bid for Danish cleaning com-pany ISS, which was abandoned in the face of a shareholder backlash.

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Neil of Edinburghershire

Wednesday, February 1, 2012 at 05:17 PM

Why cant I pay a nominal sum and get a dowry from RBS? Where do I sign...

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Vesper

Monday, January 30, 2012 at 08:56 PM

Hmm ... I think you will find Hoare Govett is London based like all the the other toxic stockbrokers. RBS may own it but all the dirty deeds are done within yards of the LSE....

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The Answer

Monday, January 30, 2012 at 01:16 AM

#1 .... wee-scamp . . "So if its so good why doesn't another UK company buy it? " ...... toxic and scottish or scotland comes to mind.

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wee-scamp

Monday, January 30, 2012 at 12:11 AM

So if its so good why doesn't another UK company buy it?

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