Oriel starts talks with RBS over Hoare Govett unit - report.
9 January 2012 - UK stockbroking and advisory firm Oriel Securities Ltd is in preliminary talks to acquire Hoare Govett, the brokerage unit that UK lender Royal Bank of Scotland Group plc (LON:RBS) is striving to sell, the Financial Times reported without specifying its sources.
The newspaper said that Oriel could team up with Hoare Govett's management to acquire the business. While RBSa[euro](tm)s stockbroking unit is long past its 1990s glory days and is struggling to retain its clients, the Hoare Govett brand is among the Citya[euro](tm)s oldest and the prestige attached to it could help Oriel achieve its ambition of landing among the top independent stockbrokers in Britain.
Hoare Govett is the former employer of two key Oriel figures. Chief executive Simon Bragg once worked there and Oriel director Peter Meinertzhagen spent 17 years as Hoare Govetta[euro](tm)s chairman, proving instrumental in assembling its once impressive base of corporate clients.
The FT went on to say that, according to analysts, RBS could settle for a nominal price so as to avoid redundancy costs. However, the bank may have to offer generous packages to key Hoare Govett staff to prevent them from defecting while negotiations are under way, the paper added.Country: UK, Sector: Banking/Financial ServicesTarget: Hoare GovettBuyer: Oriel Securities Ltd, Hoare Govett's managementVendor: Royal Bank of Scotland Group plcType: MBO, Corporate acquisitionStatus: Talks
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|Publication:||M & A Navigator|
|Date:||Jan 9, 2012|
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