Bid queue forms for Cazenove

BLUE-CHIP stockbroker Cazenove admitted today it is being bombarded by approaches which could see it taken over by a foreign bank before it reaches its goal of floating on the London stock market.

In a statement meant to clarify its float intentions, Cazenove instead fanned speculation that London's last major independent broker will become the subject of an international auction after revealing its financial results to be released next month will be strong.

In the teeth of the bear market, Cazenove pulled its previous attempt at a float 16 months ago.

Today chairman David Mayhew said the firm is looking at a flotation again but added: 'We have continued to receive approaches from other firms interested in combining with us. Not surprisingly, the frequency of these approaches has increased since equity markets started to improve, which is testimony-to the strength and attractionsof our market position.'

Mayhew is reckoned to value Cazenove at in excess of £1bn.

Its tightly held shareholdings - in the hands of management, staff and a few City institutions - fell in value last summer, putting a tag of £550m on the firm after its profits plunged to just £14m.

However, a turnaround in equity markets is likely to mean profits of more than £80m for last year. That is likely to encourage further approaches from a host of potential buyers, led by Lehman Brothers and including other US banks Morgan Stanley, JP Morgan, Bank of America and Merrill Lynch as well as Deutsche Bank and Lazards.

Cazenove said: 'As will be apparent when results are announced for the year ended 30 April, significant progress has been made which has enabled the group to capitalise on the improved market condition since last summer.

'The investment banking business has maintained or improved its market position and real momentum has been established in asset management. There has been successful recruitment at all levels and the financial position of the firm is strong.'