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JPM Caz boss is set to quit after buyout

THE chief executive of the JPMorgan Cazenove joint venture, Naguib Kheraj, is likely to step down after the businesses are fully integrated, it emerged yesterday.<br /><br />Kheraj may discuss an alternative role within JPMorgan at a later date but said he would concentrate on fusing the two banks&rsquo; operations in the meantime.<br /><br />A spokesperson said: &ldquo;It was always inevitable that after five years JPMorgan and Cazenove would look at integrating. When Naguib joined 18 months ago that was very much in his eyeline.&rdquo;<br /><br />There will be redundancies as Cazenove&rsquo;s cash equities business is merged with JPMorgan&rsquo;s Europe-focused equities division, it was confirmed, although the majority of job losses are expected to come from back office teams.<br /><br />Other details emerged as JPMorgan&rsquo;s &pound;1bn takeover of the remaining 50 per cent of the blue-blooded British stockbroker was officially announced. Cazenove shareholders will receive 510p per share plus a dividend of 25p per share in December, meaning senior figures are in line for multi-million pound windfalls.<br /><br />David Mayhew will stay in place as chairman of the merged operation while Ian Hannam will continue as chairman of capital markets.<br /><br />Alan Carruthers, formerly head of equities at Cazenove, will become head of cash equities for Europe, Middle East and Africa while Laurence Hollingworth will become head of UK equity capital markets. David Knox will become UK equity research leader.<br /><br />Mayhew said: &ldquo;The agreement we have reached is a natural extension of our relationship.&rdquo;<br /><br />The news came as Cazenove reported a &pound;65.4m pre-tax profit for nine months to September.<br /><br />Cazenove Capital, the asset manager spun off from Cazenove in 2005, will remain independent.<br />