Cazenove, the Queen's stockbroker, is set to be acquired by its U.S. partner JP Morgan in a deal that will value the firm at close to £2bn and hand some of the City's most celebrated financiers multi-million pound payouts.  

The 190-year-old stockbroker's shareholders – nearly all of whom are current or former employees – will share close to £1b when the deal is signed in the next few weeks.
Cazenove chairman David Mayhew, who joined the firm 40 years ago and is one of the City's best-known figures, is set to receive as much as £18m for his stake.  
JP Morgan has until February next year to exercise an option to buy out its investment banking partner under the terms of their initial tie-up five years ago. Negotiations are well advanced and a deal is expected by the end of the month and as early as this week. The Cazenove name will be retained.
Cazenove, which has advised on recent transactions such as Lloyds Banking Group's fundraising, has enjoyed a record year. The firm has benefited from a surge in companies looking to raise money as they rebuild their balance sheets or pay down debt in the wake of the financial crisis.
JP Morgan is thought to be keen to conclude a deal before bonuses are set for Cazenove staff at the end of the year.
Cazenove, which has been a partnership for most of its history, was valued at £700m when JP Morgan bought 50pc of the firm in a surprise deal in 2004.
The firm's shares trade on an internal market twice a year but were suspended after this summer's half-year results in an effort to prevent speculative trading. Shares last changed hands at about 245p in April, up from 240p at the start of the year but down from a 350p high at the end of 2007.
(Source: Telegraph.com)