BRITISH taxpayers will still have to fork out for the salaries of some Hoare Govett staff after Royal Bank of Scotland sold the legendary stockbroker for just £1.
RBS last night agreed to offload Hoare Govett to US investment bank Jefferies and City A.M. understands the state-owned lender will pay some staff costs after the deal has been completed, which is likely to be in March.
The takeover will see around 50 staff join Jefferies’ London office including current Hoare Govett managing directors. The business will be re-branded as Jefferies Hoare Govett.
The origins of the broker go back more than 100 years. It lost some of its brand value, however, after being absorbed into ABN Amro. RBS acquired Hoare Govett in its otherwise disastrous 2007 takeover of the bank.
The latest deal comes three months after Jefferies expanded its European fixed income team and it will pick up 50 retained clients of Hoare Govett. The British broker does not reveal current clients but in recent years it has worked with BAE Systems, GlaxoSmithKline and G4S.
Jefferies International president David Weaver said Hoare Govett is one of the “most distinguished franchises in corporate broking.” RBS did not comment on the terms of the deal.
