Rensburg, the UK private client stockbroker, was entering into a merger with Carr Sheppards, the wealth management group owned by Investec, ...

Rensburg, the UK private client stockbroker, was entering into a merger with Carr Sheppards, the wealth management group owned by Investec, the South African bank last December—yes? Well, actually, no. Last Friday, Rathbones Brothers, an investment management group, launched a hostile takeover bid for Rensburg, valuing the stockbroker at £134 million ($250.7 million). Rensburg rejected the bid. But the episode has complicated the Investec merger and could scupper the whole deal. Rathbone's advisers are understood to have requested a meeting with their counterparts at Rensburg this, according to people close to the situation. Rathbone approached Rensburg last month with an all-paper deal conditional on Rensburg scrapping its merger with Carr Sheppards. That would create a group with £9.6bn of funds under management. “We have known this party for a long time and have never received any overtures prior to the announcement of our merger with Carr Sheppards Crosthwaite,” said Mike Burns, Rensburg’s chief executive. Analysts suggested Rathbone might have to improve its offer considerably if it wants to win over the Rensburg board. They pointed out that any hostile bid could see many key Rensburg staff and clients walk away from the business. Rathbones has itself recently hired the investment banking boutique Hawkpoint to advise it on strategy, which has led to some speculating that the 300 year-old investment manager is itself looking for a partner. Meanwhile, speculation has also gathered apace on the possible sale of Durlacher, a London-based private client stockbroker. Names mentioned as suitors have included Charles Stanley and Williams de Broe.