Evolution Says It May Consider an Offer for Rival Brokerage Panmure Gordon

Evolution Group Plc, a London-based stockbroker, said it’s considering an offer for smaller rival Panmure Gordon & Co.

The company is “keen to assess Panmure Gordon’s upcoming trading results before determining whether there is any merit in taking its deliberations further,” London-based Evolution said in a statement today. “No formal discussions have taken place between management of the company and Panmure Gordon.”

U.K. brokers are seeking to consolidate after the credit crisis cut off financing for takeovers, hurting revenue from advising on fundraisings and mergers. Panmure, which has about 64 corporate clients, said in March its net loss shrank to 11.1 million pounds ($17.4 million) in 2009. A purchase would follow broker Execution Holdings Ltd.’s December takeover of Noble Group Holdings Ltd.

Panmure Gordon said in a separate statement that it hasn’t held talks with Evolution. The broker also said the first half “represented particularly challenging markets” though it “expects a bias in revenues towards the second half.”

Panmure Gordon gained 8.6 percent to 31.5 pence in London, giving it a market value of about 45.7 million pounds ($71.8 million). Evolution fell 0.6 percent to 85.25 pence, paring its market value to about 198 million pounds.

QInvest LLC, a Qatari investment bank, owns about 44 percent of Panmure.

To contact the reporter on this story: Ambereen Choudhury in London achoudhury@bloomberg.net

To contact the editor responsible for this story: Edward Evans in London at at eevans3@bloomberg.net

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