JP Morgan set to buy Cazenove

The United States investment bank JP Morgan is poised to acquire the remaining 50 per cent of its partner Cazenove, the Queen's stockbroker, for close to £2 billion ($4.5 billion), in a deal that will deliver huge payouts for shareholders.

JP Morgan, which bought 50 per cent of 186-year-old Cazenove in 2004, has until February to exercise an option to buy out its investment banking partner under the joint venture's terms, but a deal could be concluded as early as this week.

It is understood that Cazenove's 1500 shareholders will share a payout of up to £1 billion.

Founded in 1823 by Philip Cazenove, the business became a company in 2001, transferring ownership to individuals. Since the joint venture was established in 2004, JP Morgan Cazenove has become a powerful player in investment banking.

- INDEPENDENT