Surprise bidder in frame for Panmure

JEFFERIES, the American investment bank that provides advice to small and medium US companies, has emerged as a contender to buy 127-year-old City stockbroker Panmure.

The revelation will come as a shock to Lazards, the blueblooded investment bank that Panmure insiders had tipped as their preferred bidder with an offer of more than £50 million.

It is believed that senior executives from Jefferies held interviews last Tuesday with key employees at Panmure, and even hosted a drinks party at which both sides got to know each other better.

New-York based Jefferies, a specialist in trading stock for institutional investors, recently reported a 74% increase in third-quarter profits to £12 million, while revenue rose 24% to almost £130 million.

Panmure UK, whose clients include Safeway, advertising group WPP and InterContinental Hotels, was put up for sale by German owner WestLB last month after an internal review decided that it was no longer a core business.

It is believed that about six institutions made offers by Friday's deadline, including corporate financiers Bridgewell, and a management team led by Panmure's chief executive Tim Linacre and backed by venture capitalists 3i.

If Lazards manages to buy Panmure, it would mark the first major acquisition by Bruce Wasserstein, 55, since he joined the investment bank as chief executive and major shareholder in January 2002.