RIVAL brokers
If it goes ahead, the tie-up, first reported by
Kleinman late last night, could create the City's biggest dedicated investment bank for small-cap growth companies.
The tie-up comes amid a challenging backdrop for City brokers, with a widespread slump in capital markets hammering profits throughout the sector.
Cenkos recently reported a £2.24m loss for the full-year, down from a £3.4m profit a year ago, while Finncap swung to a £2.59m half-year loss in December as flotations dried up.
The share price of both Londonlisted brokers have suffered accordingly, with shares in Finncap and Cenkos falling 59 per cent and 49 per cent over the last year respectively.
Finncap, with a market capitalisation of £21m, will acquire
The news comes months after fellow City broker Panmure Gordon abandoned a bid for Finncap due to an inability to reach a price agreement.
£ KLEINMAN'S TAKE: PAGE 8
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