Jefferies to acquire RBS's corporate broking arm

26th Jan 2012 07:54

It may be a sign of the times, in economic terms, or perhaps simply the result of US banks having moved first to clear their balance sheets, but another of the City's oldest institutions - Hoare Govett - looks set to fall into US hands. US investment bank Jefferies is close to buying Royal Bank of Scotland's corporate broking arm Hoare Govett, a person familiar with the matter said on Wednesday, according to a report in Bloomberg. It is understood that a sale could be announced by Tuesday and would involve about 40 Hoare Govett staff and some other employees.As well, Bloomberg reports that Jefferies will pay only a nominal amount to buy Hoare Govett and that RBS has offered to provide funds to cover some staff costs.AB