Shares digital

Rumours are circulating that we could be on the brink of a bidding war for investment bank Close Brothers (CBG). Having originally refused to entertain the 950p bid from broker Cenkos Securities (CNKS:AIM), it’s reported Close and Cenkos are now talking. It is thought that Cenkos could raise its offer to £10 after pressure from Close’s shareholders. Meanwhile, US private equity group Blackstone, already fingered in press reports as a potential bidder, is rumoured to be ready to table its own £10.60 offer.

Shares says: Even in today’s stifled M&A markets a buyer is going to have to pay a lot more than £10 for Close, the various parts of which are worth more than the sum. SK