JP Morgan Gets Hold Of 'The Little Black Book'

Well, the long-predicted JP Morgan Cazenove joint venture has now been sealed. Here are a few facts about the new arrangement.

The new entity is to be called JP Morgan Cazenove.

David Mayhew and Robert Pickering, Cazenove's chairman and CEO, will take the same roles in the new venture. JP Morgan Chase will contribute three non-executive directors to the main board. The executive commmittee will be made up for 7 senior Cazenove bankers and 5 from JP Morgan.

The new arrangement will combine JP Morgan's UK investment banking business with Cazenove's brokerage activities and enable JP Morgan to get closer to 42 of the UK's largest companies.

Up to 70 JP Morgan staff are thought likely to come over to work directly in the new joint venture.

Cazenove will retain its private equity and fund management units and will have a 50% stake in the new business with JP Morgan.

The partnership will come into effect during the first quarter of 2005. It will have around 820 employees, most of whom are said to have broadly welcomed the deal.

JP Morgan will have a call option to acquire Cazenove outright after five years.

The sealing of the deal has effectively ended Cazenove's 181 year history of independence.

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