Rensburg has rejected Rathbone Brothers final offer, saying it significantly undervalues the company. Rensburg stated that it sees risks...

Rensburg has rejected Rathbone Brothers final offer, saying it significantly undervalues the company. Rensburg stated that it sees risks to “certain business units and the retention of key fee-earning Rensburg staff together with the associated effects on revenue” if the Rathbones’ bid was to be accepted. The statement, based on the unanimous opinion of the Rensburg board, should end the bid by Rathbones to buy its rival wealth manager and clear the way for Rensburg's own merger with Cross Sheppard Crossthwaite, the subsidiary of Investec PLC. Rathbones said in a statement yesterday that its offer to acquire the Leeds-based company would save more money and cost less to implement than the competing plan endorsed by Rensburg's board in mid-March. London-based Rathbones said annual cost savings by December 2008 would be at least £8 million ($15 million), compared with £5.5 million outlined by CSC, and that it would cost £6 million to integrate Rensburg, compared with costs of £9 million set out by CSC.