views

JPMorgan eats up 1bn Caz leftovers

US INVESTMENT bank JPMorgan Chase &amp; Co is expected to seal its &pound;1bn buyout of the remainder of Cazenove today.<br /><br />JPMorgan will pay around 500p per share for the last 50 per cent of the 190-year-old British brokerage, valuing the total business at &pound;2bn.<br /><br />The deal will land a multi-million pound windfall for many Cazenove luminaries past and present, including chairman David Mayhew, who is set to pick up around &pound;19m.<br /><br />The firm, often referred to as &lsquo;blue blooded&rsquo; for its deep roots across the City of London, has a host of loyal employees who have been at the business for decades and hold significant shares.<br /><br />Mayhew and Naguib Kheraj, Cazenove&rsquo;s chief executive, are expected to be given key roles at the US bank. <br /><br />Also tipped for senior positions are head of equities Alan Carruthers, head of corporate finance Ian Hannam and head of capital markets Charles Harman.<br /><br />In addition finance director Michael Power may take a top role.<br /><br />The move represents the third major upheaval in Cazenove&rsquo;s ownership structure in 10 years. Shortly before Christmas 2000, employees were told the organisation &ndash;&ensp;which acts as stockbroker to the Queen &ndash; was shedding its partnership structure ahead of a planned stockmarket flotation.<br /><br />The sale of shares was eventually scrapped in favour of a joint venture with JPMorgan in 2004.<br /><br />Although Cazenove now has just 36 major companies on its list of clients, down from half the FTSE 100 five years ago, it has become a big player in fundraising.<br /><br />In the past two years it has guided HSBC and Barclays through huge rights issues and is currently advising Lloyds Banking Group on its record-breaking &pound;13.5bn cash call.<br /><br />JPMorgan&rsquo;s purchase of the second half of Cazenove&rsquo;s business will herald a full-scale integration of the two operations, with job losses likely to follow as their equity teams are merged. The Cazenove name is expected to stay, however.<br />