Broker Panmure in advanced merger talks with Liberum

FORMER Barclays boss Bob Diamond is in advanced talks to merge his stockbroking business Panmure Gordon with rival Liberum, according to reports.

The firms each employ around 150 people and are important in the City as they are among the few brokers that work with mid-sized companies. Diamond bought Panmure in 2018 through his financial business Atlas Merchant Capital.

They advise companies about stock market listings and mergers, as well as publishing their own research. The deal, which was first reported by The Times yesterday, could be complex as Liberum is owned by its staff.

A dearth of floats over the last year has hit the stockbroking industry hard – already prompting some companies to join forces through mergers or takeovers.

Panmure tried to merge with FinnCap a year ago, but FinnCap instead tied up with Cenkos to create Cavendish. Diamond recently told The Mail on Sunday that he and Rich Ricci, his former sidekick who he has made Panmure’s chief executive, were on the hunt for takeovers next year.

Diamond said: ‘We looked at a couple of opportunities this year.

‘Both Rich Ricci, the chief executive, and I have said that we believe that if you take a look over 2024 you’re going to see a number of consolidation opportunities and if we do we would like to take advantage of them.’ One City outfit, Numis, has already been snapped up – swallowed by Deutsche Bank in a £410 million deal that completed in October.

Diamond has been trying to revive the fortunes of Panmure Gordon – the venerable City firm founded in 1876 which counts David Cameron’s late father as a former senior partner – since his investment firm Atlas Merchant joined forces with Qatari investors to take control of the business.

But the latest annual results showed it swung to £16.3 million loss in 2022 after reporting a £3.1million profit the year before.

The results statement said it had been a ‘challenging year for the group, navigating a difficult economic environment’.

Diamond’s takeover of Panmure marked a return to the City after he stepped down as chief executive of Barclays in 2012. His downfall came after the bank received a £290million fine for manipulating the interbank lending rate Libor.

Ricci, a flamboyant figure known for his trilby hats, three-piece suits and love of horseracing, resigned as head of Barclays’ investment banking business in 2013. Liberum declined to comment. Panmure was approached for comment.