JP Morgan set for full takeover of Cazenove in a deal worth £950m

Published on Sunday 15 November 2009 21:14

CAZENOVE, the City firm that advises some of the UK's largest companies, and whose clients include the Queen, is to be taken over by JP Morgan, the US investment bank.

JP Morgan is understood to be paying 950 million for the 50 per cent of the London-based firm it does not already own.

The deal is expected to spark a major payout for Cazenove's shareholders, nearly all of whom are current or former staff.

JP Morgan has until February to exercise an option to buy out its partner under the terms of their tie-up five years ago. Negotiations are said to be well advanced and a deal could be reached by the end of the month.

Cazenove was valued at 700m in 2004, when JP Morgan bought its 50 per cent stake to create JP Morgan Cazenove.

The joint venture made pre-tax profits of 134.5m in 2008.

David Mayhew, the Cazenove chairman, who joined the firm 40 years ago and is one of the City's best-known figures, could receive as much as 18m.