A potential merger between two UK wealth boutiques has been abandoned, leaving one to press ahead with plans for an initial public offering instead.
Listed firm Rathbones announced on August 21 that it had entered exclusive merger talks with rival Smith & Williamson. Media reports earlier this week said a counter offer from a third wealth manager, Tilney, had been tabled. Neither Tilney nor Smith & Williamson commented on the reports.
However, statements late September 1 from Rathbones and Smith & Williamson said merger talks between the two companies had been terminated as neither firm was able to “reach agreement on terms which would be in the best interests” of all their stakeholders.
Philip Howell, chief executive of Rathbones, said, “We continue to believe that our proposition was both a compelling strategic and value creation opportunity for all Smith & Williamson’s stakeholders. The potential combination was intended to accelerate Rathbones’ existing strategy, but ultimately we were unable to agree terms that offered our shareholders an appropriate balance of risk and reward.”
Full Content: Financial Times
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