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Seymour Pierce rescued in pre-pack

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13th Feb 2013
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Seymour Pierce, one of London's oldest brokers, has been rescued in a pre-pack deal just hours after its shares were suspended and Grant Thornton appointed administrators.

Investment bank Cantor Fitzgerald stepped in to pay an undisclosed price for the 130-year-old broking business which advises more than 70 companies.

The distressed business acquisition is expected to give Cantor a strong platform to expand into the UK small business market for corporate finance and advisory services.

While this comes as good news for Cantor and staff of Seymour Pierce, creditors will now have no chance of recouping their £3m to £4m of debts. 

Seymour Pierce, which is led by football financier Keith Harris, had hoped to secure a new financial backer following emergency talks. However, prior to formally entering insolvency, it had already arranged under a pre-pack deal for its assets to be transferred to Cantor.

David Dunkley of Grant Thornton said the sale of the business to Cantor would give it the financial resources to stabilise itself and start capitalising again on its well-known brand.

“Seymour Pierce has struggled financially in recent years, with problems reflective of the mid-market stockbroking sector, with corporate finance mandates difficult to execute and falling secondary commission in its target market,” he said.

James Rowsell, chief executive of Cantor Fitzgerald Europe, added: “Our acquisition of Seymour Pierce provides us with the opportunity to accelerate our strategy to provide full-service corporate finance and advisory services for clients, and to expand the reach and product specialisation of our established European equities business.”

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