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Former Barclays chief Bob Diamond to buy stockbroker Panmure Gordon

Former Barclays chief Bob Diamond to buy stockbroker Panmure Gordon

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by March 17, 2017 Business, UK

Bob Diamond, the former chief executive of Barclays, is staging a City comeback after agreeing to buy one of London’s oldest stockbroking firms.

Diamond’s buyout vehicle, Atlas Merchant Capital, has teamed up with QInvest to acquire Panmure Gordon.

The deal marks a return to the Square Mile for an American banker whose high-flying career came to a halt in 2012 when he was forced to quit Barclays in the wake of the Libor rigging scandal. The then chancellor, George Osborne, described Diamond’s resignation as “the right decision for Barclays – and for the country”.

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Diamond is choosing one of the City’s most venerable names for his comeback. Panmure Gordon was founded in 1876 and its alumni include David Cameron’s late father, Ian, who was a senior partner at the firm.

Panmure directors unanimously recommended the offer of £1 per share, which values the company at £15.5m. Atlas will control a majority stake, with QInvest maintaining its existing 43% stake.

Commenting on behalf of Atlas, its UK and Europe boss Matthew Hansen, said: “We believe there is significant opportunity for Atlas, in partnership with QInvest, to apply our operational skills and financial services expertise to enhance Panmure Gordon’s strong reputation and build a larger, successful boutique investment bank.

“This long term stabilisation and development can only realistically be achieved as a private company, out of the glare of the public market and the effects of share price movement.”

A statement from the stockbroker said that its independent directors unanimously consider the offer price to be “fair and reasonable”.

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