Hoare Govett Is Seeking Aid
LONDON -- The British brokerage firm Hoare Govett said it is seeking outside help to finance a full management buyout of the firm following the collapse of a partial buyout deal with its parent, Security Pacific Corp.
Senior managers had tried for two years to buy back a 51% stake from the Los Angeles banking company, which has controlled Hoare Govett since 1986. The plan fell through when Security decided last Thursday to sell its entire 100% stake.
Side Effect of Merger
Security, currently in merger talks with BankAmerica Corp., decided that the international broker would not play a part in the merged banks' long-term strategy.
Hoare Govett chairman Peter Meinertzhagen said he does not fear that the firm will have to close, but it needs "third-party financing" to complete the buyout.
He said Security Pacific had committed to keep the broker operating as a going concern for at least six months and may extend that period.
