The Daily Telegraph reports that independent stockbroker Collins Stewart has agreed in principle to buy money broker Tullett & Tokyo Liberty for £230m.
Due diligence has been completed, but there is still some discussion on what the ratio of cash and shares will need to be to complete the purchase. Analysts expect at least half the purchase price will be paid in shares.
Collins Stewart is one of the fastest growing stockbroking firms in the UK. The group also engages in asset management, corporate finance and private client stockbroking.
Tullett & Tokyo Liberty is a fully diversified brokerage group, with around 2,000 staff operating out of 19 international offices. The firm recently announced interim results for the first six months ended 30th June. Turnover increased 11.1% over 2001 and profit before tax came in at £19.7m, down only slightly on the same period 12 months ago.
There will no doubt be some job losses should the deal gone through, although they are likely to be minimal as the businesses are thought to have very little overlap.