JPM and Caz close to sealing a takeover deal
UBS has completed its valuation of Cazenove and is expected to present a figure to JP Morgan, which is mulling a bid for the UK brokerage before the end of the year.
JPM appointed Swiss investment bank UBS to execute the valuation, with a view to buying out Cazenove, with which it has a 50-50 ownership of joint venture JP Morgan Cazenove.
The valuation is understood to be finished, and the figure should be highly appealing for Cazenove, led by chairman David Mayhew. JPM Caz has had a successful year, having advised on a number of high-profile secondary issues including HSBC’s £12bn fundraising. It is also expected to be a joint underwriter for the £16bn cash call from Lloyds Banking Group.
Cazenove and JP Morgan Chase created the joint venture in 2005 and under the terms of the deal there are options for JP Morgan to buy or Cazenove to sell its interest in the joint venture by February 2010.