One of the London Stock Exchange’s oldest businesses is on the verge of selling its securities unit, underscoring the industry’s escalating challenges from regulatory reform.
Sky News has learned that Charles Stanley is in advanced discussions with an American bidder for its corporate finance unit, which employs around 35 individuals in areas like as equities research.
According to those familiar with the situation, the most likely acquirer of Charles Stanley Securities is Stifel Financial, a US-based corporation that already has a foothold in the City through its ownership of broking firms such as KBW and Oriel Securities.
Cantor Fitzgerald was also mentioned as a potential bidder, and Panmure Gordon is alleged to have made an approach for the company in recent days.
The deal’s value is unknown, although insiders say it’s likely to be worth several million pounds.
According to one insider, a deal might be revealed as early as Tuesday.
Charles Stanley’s securities business has faltered in the face of fierce competition from small and mid-cap brokers, and other larger asset management firms, such as Brewin Dolphin, have also sold off their corporate finance sections.
In January, Charles Stanley Group, one of the oldest listed companies on the London Stock Exchange, updated the City on its performance, saying: “All divisions are ahead of their prior year comparative with the exception of Charles Stanley Securities, which has experienced a lower level of corporate finance activity during the current year.”
Charles Stanley Group named Paul Abberley, a former Aviva Investors CEO, as chief executive in December, and Ben Money-Coutts as temporary chief financial officer a few weeks later.