London: US investment bank JP Morgan Chase will later Thursday unveil a one-billion-pound (1.67-billion-dollar, 1.12-billion-euro) deal to buy 190-year-old London stockbroker Cazenove, a newspaper said.
The bank is to pay about 535 pence a share for the 50-percent stake of Cazenove which it does not already own, the Financial Times said.
Under the deal, Cazenove chairman David Mayhew would stay on and was likely to receive a windfall of more than 19 million pounds (21.2 million euros, 31.7 million dollars), the newspaper said, citing sources.
British media reported earlier this week that JP Morgan was looking to take full control of Cazenove, which is broker to Britain's Queen Elizabeth II.
Five years ago, Cazenove and JP Morgan agreed to combine their investment banking operations in Britain into a joint venture called JP Morgan Cazenove, with each group holding a 50-percent share.
Under the terms of the deal, JP Morgan has until February 2010 to exercise an option to buy out its investment banking partner.
Bureau Report
First Published: Thursday, November 19, 2009, 10:07