FinnCap shares jump after takeover approach from rival Panmure
18 October 2022, 09:04
The stockbroker confirmed it is in early stage talks with Panmure Gordon, which is controlled by former Barclays boss Bob Diamond.
Stockbroker finnCap Group has seen its shares jump higher after it confirmed a takeover approach by rival Panmure Gordon.
Shares in finnCap soared by more than a quarter at one stage in early trading on Tuesday after it confirmed the pair are in early stage talks following a report late on Monday that Panmure – which is controlled by former Barclays boss Bob Diamond – is plotting a tie-up between the two.
FinnCap said Panmure’s proposal would see it offer cash for the company, with a partial share alternative.
FinnCap said: “The board of finnCap notes recent speculation and confirms that it has received indicative non-binding proposals from Panmure Gordon Group Limited regarding a possible combination of the two companies.”
It added: “Discussions between the company and Panmure Gordon are still at an early stage.
“There can accordingly be no certainty that any offer will ultimately be made for the company, nor as to the terms on which any offer might be made.”
Panmure has until November 15 to make an offer or walk away under UK Takeover Panel rules.
The combination of the two would bring together two well-known specialists in advising small and medium-sized firms.
It comes as the sector is battling amid a dearth of deals and the need to make savings in the face of slowing corporate activity.
FinnCap has had a tough past year, with shares down heavily and its founder and boss of 24 years, Sam Smith, stepping down in the summer.
Panmure is majority owned by Mr Diamond’s Atlas Merchant Capital, which bought a majority stake in the group in 2017.
Mr Diamond was the former chief executive of Barclays, who stepped down from the banking giant in 2012, days after it was fined for rigging the Libor interbank rate.
He set up Atlas in 2013.
