STOCKBROKER Evolution Group has decided against bidding for smaller City rival Panmure Gordon in the face of opposition from both its takeover target and one of its own big shareholders.
Evolution said in September that it was considering bidding for Panmure, which was later granted a “put up or shut up” deadline of 28 October from the Takeover Panel, to force Evolution to decide whether to go ahead with a firm bid.
Evolution said yesterday it abandoned its interest in Panmure after a rebuff from the company’s directors, led by chief executive Tim Linacre.
“Evolution has now received a letter from the board of Panmure Gordon rejecting the proposal outright and has therefore concluded that there is no merit in further discussions,” the firm, run by chief executive Alex Snow, said in a statement.
“Accordingly it has determined not to make an offer for Panmure Gordon.”
Panmure said the offer had not been in the interests of the company or its shareholders.
“As set out in the interim results of 29 September, the company is well positioned for the future, with a strong brand, excellent client list and clear strategy,” it stated.
Panmure shares fell after Evolution threw in the towel, closing down eight per cent at 31p. Meanwhile Evolution’s share price rose 5.4 per cent to 88.5p.
City A.M. Reporter