Schroders confirms talks to acquire Cazenove Capital
Schroders has this morning confirmed it is in talks with Cazenove Capital regarding a possible cash offer for the business, with a deadline of 19 April for providing a firm statement of intent to buy or walk away according to the UK rules on takeovers and mergers.
In a statement Schroders said:
“Schroders plc (“Schroders”) notes the announcement by Cazenove Capital Holdings Limited (“Cazenove Capital”) concerning a possible offer by Schroders. Schroders confirms that it is in discussions regarding a possible cash offer, with loan note alternative, for the entire issued ordinary share capital of Cazenove Capital.
This announcement does not amount to a firm intention to make an offer and accordingly there can be no certainty that any offer will be made for Cazenove Capital.
In accordance with Rule 2.6(a) of the City Code on Takeovers and Mergers (the “Code”), Schroders will have until 5 p.m. on 19 April 2013 to announce either a firm intention to make an offer for Cazenove Capital or that it does not intend to make an offer for Cazenove Capital. This deadline will only be extended with the consent of the Takeover Panel in accordance with the Code.
A further announcement will be made when appropriate.“
The regulations that cover takeovers and mergers in the UK are designed to stop repeated attempts that could cause business disruption and lead to owners of businesses, such as shareholders, suffering losses to their capital.