Rathbone Brothers' planned merger with financial services provider and corporate adviser Smith & Williamson could be derailed by an aggressive offer from private equity-backed rival Tilney.
Tilney has made an all-cash offer for Smith & Williamson, Sky News reported on Tuesday, a week after FTSE 250-listed investment managerRathbones announced it had been in "exclusive" talks about a merger amid a wave of consolidation in the wealth management sector.
Sources close to Smith & Williamson told Sky that the company's management favoured a potential deal with Rathbones rather the cash offer from Permira-owned Tilney.
Rathbones is thought to be looking at all equity deal that would see S&W shareholders owning around 30% of the enlarged entity.
The London and Liverpool investment group is expected to make a formal announcement about the terms of a deal next week and if directors agree a deal it will be subject to the approval of shareholders, with Smith & Williamson mostly owned by its current and former staff, with a 29% stake owned by Canada's AGF.
Tilney looks to derail Rathbones' Smith & Williamson merger talks - report
Reviewed by Mostaqbali
on
August 29, 2017
Rating:
Reviewed by Mostaqbali
on
August 29, 2017
Rating:
No comments: