The Hindu : Business : Many suitors for U.K. investment bank

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Tuesday, Dec 18, 2007
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Many suitors for U.K. investment bank

Tatas, Orix among potential bidders for the bank, according to media reports

LONDON: After taking over steel giant Corus and emerging as a front-runner for iconic car brands Jaguar and Land Rover in the U.K., the Tatas are now reportedly looking at a potential bid for a British investment bank that was once its advisor.

According to media reports here, the Tata group is among the potential suitors for over 100-year old British investment banking firm Close Brothers. Without naming its potential bidders, Close Brothers said in a regulatory filing here that it has been approached by many parties.

Incidentally, Close Brothers was the Tata group’s advisor in its 53.4 million pound sterling cash offer for INCAT International Plc in 2005. This was the first public offer for a U.K. firm by an Indian bidder and was the largest Indian acquisition into the European software and IT services space till that time.

“The board of Close Brothers announces that following the indicative offer from Cenkos on November 7, it has received a number of further approaches.

“The discussions with interested parties are at an early stage and there can be no certainty that they will lead to an offer,” Close Brothers said in its filing.

The Tatas are among various potential bidders such as private equity giant Blackstone and Japanese financial group Orix, according to media reports here.

Founded by William Brooks Close, the services of Close Brothers include investment funds, wealth management, securities trading, corporate finance advice and lending. The investment bank was listed on the London Stock Exchange in 1984.

However, the merchant bank’s fortunes have taken a beating in the stock market, with shares declining as much as 30 per cent this year.

Financial Times termed the emergence of the Tatas and Orix as potential bidders as a surprise, adding that “the group, which still styles itself “a merchant bank”, has a long history and a conservative reputation.” — PTI

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