Brewin Dolphin in talks over investment sell-off

Brewin Dolphin in talks over investment sell-off

Brewin Dolphin, one of the City's oldest fund managers, is weighing up a sale of its investment banking arm.

By Ben Harrington 9:00PM GMT 01 Jan 2011

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It is understood that the company, which has £23bn under management, is holding talks with potential buyers of its corporate finance and corporate broking business following several unsolicited approaches.

Brewin Dolphin Holdings

The potential disposal of the investment banking division comes after the group said at its results earlier this month that the unit suffered an operating loss of £800,000 during the first half but managed to move into the black for the full year.

Graeme Summers, head of investment banking, reportedly said the period had been "extremely challenging". He added, though, that he was "cautiously optimistic" on the outlook.

Brewin Dolphin's investment banking arm typically focuses on advising and raising capital for small companies.

It worked on the £290m bid for Scott Wilson from US company URS and on JKX Oil & Gas's £38m placing earlier this year.

It also advised garden centre company Dobbies on its £151m takeover offer from Tesco in 2007.

Brewin Dolphin can trace its origins back to the stockbroking firm of John Dawes, a founder of the London Stock Exchange.

His firm developed through many partner changes to become Wontner, Dolphin & Francis in 1970.

In 1974 Wontner, Dolphin & Francis merged with Brewin & Co to form Brewin Dolphin.

The group then carried out a series of acquisitions, buying investment managers such as Bell Lawrie, Wise Speke and Hill Osborne.

It is currently listed on the London Stock Exchange and is part of the FTSE 250 index.

Were some form of corporate activity to take place, it would become the latest in a series of similar moves in the Square Mile. Last month, Seymour Pierce announced plans to be acquired by US reinsurer Gerova Financial, while Evolution Securities considered a bid for smaller rival Panmure Gordon at the tail-end of last year.

A spokesman for Brewin Dolphin declined to comment.

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