The City stockbroker controlled by Bob Diamond, the former Barclays chief, is plotting a merger with one of its listed rivals as a slowdown in corporate activity drives a search for bigger cost savings.
Sky News has learnt that Panmure Gordon, in which Mr Diamond’s Atlas Merchant Capital took a majority stake in 2017, has approached FinnCap Group about a potential tie-up.
Discussions between the two companies are said to be at an early stage, and there was no certainty on Monday evening that they would result in a deal.
A merger of Panmure and FinnCap would bring together two of the best-known players in the area of the London stockbroking industry that focuses on advising small and mid-cap companies.
FinnCap has endured a difficult period, losing Sam Smith, its prominent chief executive and one of relatively few female City bosses, during the summer.
Its shares have slumped by nearly two-thirds during the last year.