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Wealth management company Quilter's shares jump 14.6% as NatWest weighs up bid 

Asset manager Quilter’s shares rise nearly 15% as banking giant NatWest reportedly considers an offer

  • Shares rose 14.6 percent or 15.3p to 120.3p after the Mail on Sunday reported that the banking giant was in the early stages of studying a bid for the FTSE250 asset manager.
  • City sources said private equity firms, including CVC, Bain Capital and BC Partners, have also expressed interest in recent weeks.

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Quilter shares rose to a two-month high following a report that it was in NatWest’s crosshairs.

The stock rose 14.6 percent or 15.3 pence to 120.3 pence after the Mail on Sunday reported that the banking giant was in the early stages of studying a bid for the FTSE250 asset manager.

City sources said private equity firms, including CVC, Bain Capital and BC Partners, have also expressed interest in recent weeks.

Quilter shares rose to a two-month high following a report that put it in NatWest's crosshairs.  used to be

Quilter shares rose to a two-month high following a report that put it in NatWest’s crosshairs. used to be

Quilter and NatWest declined to comment. If NatWest were to take over, however, it would be the biggest takeover for the lender since it fell into taxpayers’ hands at the height of the financial crisis with a £46bn bailout.

Quilter, valued at nearly £1.5bn, is considered one of many asset managers that lack the scale and investment to compete with bigger industry players.

The stock has fallen nearly 37 percent in the past 12 months and is worth 17 percent less than their bid price when it went public in 2018 following the breakup of its parent company, financial services firm Old Mutual.

Quilter has moved up NatWest’s list of potential targets as the bank looks to grow its wealth management business. In June, NatWest chief executive Alison Rose said the bank had “significant excess capital” and would consider a merger and acquisition deal that could boost “compelling shareholder value.”

The bank already owns Coutts, whose clients include the Queen, members of the aristocracy and wealthy city professionals. But a deal to buy Quilter would extend these services to “mass-wealthy” middle-class households with over £100,000 in extra money to invest.

NatWest is also thought to put other financial services companies on the map, although plans for this are still in their infancy. Predictions of a blow to Quilter came after NatWest forecast last month that operating profit would be £1.5 billion in the second quarter of this year, up 20 percent from the same period a year ago.

A takeover would also be the latest in a string of deals in the wealth management sector, with 230-year-old Charles Stanley being snapped up by US rival Raymond James for £279 million last year. In April, London-based Brewin Dolphin was bought by Royal Bank of Canada for £1.6 billion, while Aviva bought Succession Wealth Management in March for £385 million.

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