Blow for Rich Ricci when Finncap offer is scrapped: Panmure Gordon pulls out of his offer to buy his rival
Coup: horse racing fan Rich Ricci
Shares in Finncap it fell 16 percent after the broker’s rival, Panmure Gordon, backed out of its offer to buy it.
In October, it emerged that Panmure had been snooping around, but Finncap confirmed that the two were unable to come to an agreement.
Finncap told investors: “In light of the strengths of each company as independent entities, each board has concluded that it is not possible to find mutually acceptable terms or structures.”
That’s a setback for Panmure boss Rich Ricci and backer Bob Diamond, as a union would create economies of scale. They worked together at Barclays – Diamond as chief executive – before ignominious departures.
Diamond left in 2012, days after Barclays was fined for manipulating the Libor interest rate. Ricci, a fan of horse racing, fell out of favor pocketing an £18 million stock payment as the UK recovered from recession.
Deals, stock prices, and even efforts by companies to raise money from their investors—a broker’s bread and butter—have been slammed to a halt, making a consolidation attractive.