Shares in London brokerage FinnCap surged over 30 per cent this morning as it confirmed that City rival Panmure Gordon was eyeing a takeover swoop for the firm.
In a statement today, FinnCap chiefs said the firm had received “indicative non-binding” proposals for a cash acquisition by Panmure Gordon after reports yesterday it was plotting a takeover.
Discussions between the two brokerages are at an “early stage”, the firm said, and there is no certainty over whether an offer will be made.
Shares in FinnCap surged over 30 per cent in early trading and hit 17.25p per share – up from 13.50p yesterday.
The takeover swoop comes amid a turbulent time for FinnCap as it grapples with a deal slowdown that has dampened profits at some of the City’s top investment banks and brokerages.
Shares in the firm are trading down 50 per cent since October last year and the firm has reportedly been among a crop of City firms to have been shedding staff to cut costs amid the slowdown.
The firm said it had been “less hit” than primarily equity- focused competitors, however.
Panmure Gordon is controlled by former Barclays chief Bob Diamond, who took a controlling stake in the firm via his investment vehicle Atlas Merchant Capital in 2017.
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