View the article online at http://citywire.co.uk/money/article/a1001457
Bob Diamond and Qataris swoop on Panmure Gordon
Former Barclays boss Diamond joins forces with Qatari investment bank QInvest to launch £15.5 million bid for UK stock broker.
Former Barclays boss Bob Diamond (pictured) has made a City comeback with a bid for Panmure Gordon (PMR).
In a stock exchange announcement this morning Diamond's private equity vehicle, Atlas Merchant Capital, said it had joined forces with QInvest, the Qatari investment bank, to launch a £15.5 million bid for one of the UK's oldest stockbrokers.
The 100p per share bid represents a 68.1% premium to Panmure's closing price of 59.5p last night. The shares responded by soaring nearly 75% to 104p after the market opened.
The independent Panmure Gordon directors have unanimously recommended shareholders vote in favour of the deal.
Panmure chairman Andrew Adcock told the market: '[The offer] will be attractive in providing Panmure Gordon shareholders with an opportunity to exit at a significant premium to the current share price.
'Against the backdrop of a challenging macro-economic environment, with the resultant market volatility which has in recent years impacted Panmure Gordon's business, the independent Panmure Gordon directors believe that the scheme price reflects a fair and reasonable offer.'
Even after today's spike Panmure shares have lost more than half their value since their 220p peak in March 2013.
The deal will result in Panmure, which was established in 1876, delisting from the London Stock Exchange.
Atlas, which was founded by Diamond in 2013, believes by taking Panmure private it can realise its potential.
Atlas head of UK and Europe Matthew Hansen said: 'We believe there is significant opportunity for Atlas, in partnership with QInvest, to apply our operational skills and financial services expertise to enhance Panmure Gordon's strong reputation and build a larger, successful boutique investment bank.
'This long-term stabilisation and development can only realistically be achieved as a private company, out of the glare of the public market and the effects of share price movement.'
The news marks a comeback for Diamond five years after he left Barclays, although he has also made a foray into African banking in recent years.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the shares
More from us
- Bob Diamond spotted in the City
- Carlyle partners with Bob Diamond in pursuit of Barclays Africa assets
- Bob Diamond's return to banking raises investor interest
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.