Cazenove sizes up bidders list

BLUE-CHIP stockbroker Cazenove today confirmed it was still in play as a takeover target as it delivered an upbeat set of annual figures showing a near threefold rise in underlying profits.

Cazenove's board, headed by chairman David Mayhew, said that they were still 'evaluating outline proposals which we have received from other firms', thought to include US investment bank Lehman Brothers and JP Morgan.

Mayhew and his board anr thought to want to hold out for a price close to £1bn although potential bidders are understood to have talked of making offers in the £900m region.

Chief executive Robert Pickering warned however that the firm was under no pressure to accept an offer if it was not in the best interests of shareholders, clients and employees.

'We are not motivated by fear of being competed out of business,' he said.

An 18% pick-up in Cazenove's revenues to £251.4m coupled with a 10% drop in administrative expenses to £162.7m helped increase pre-tax profits before exceptionals to £41.7m.

Cazenove pumped £25m of its profits into the pension fund, meaning after-tax profits doubled to £26.3m for the year to end-April.

Potential bidders want access to an unrivalled corporate broking client list which should yield profitable finance revenues. Cazenove acts as broker for half of the FTSE 100 and today said it had added 25 new companies as clients.