A LONG-rumoured takeover of London stockbroking firm Oriel Securities is expected to be announced this morning, City A.M. understands.
Around 100 of Oriel’s employees were briefed yesterday afternoon about the firm’s agreed takeover by US brokerage and investment banking group Stifel Financial.
The deal is reportedly worth around £35m to Oriel, though not all of the money will be seen by shareholders: some will be used to cover the company’s debts.
Stifel owns another brokerage already, but reportedly has no plans to merge the two. Keefe, Bruyette & Woods is quartered in New York but has offices in London. Today’s move would double the size of Stifel’s presence in London.
Last year, a merger between Oriel and Panmure Gordon was floated and discussed by the firms, but nothing came of the suggestions.
The deal follows Canaccord’s purchase of London stockbroker Collins Stewart Hawkpoint, and Jefferies’ acquisition of UK broker Hoare Govett from Royal Bank of Scotland in recent years.