Beesons in talks with Evolution
Article Date: Sep 19 2001Blue blooded investment bank Beeson Gregory has admitted that it is in takeover talks with Evolution, the technology investment and research business. William Davidson reports.
Following press speculation over the last day or two, an announcement was finally released by Beesons (BGG) and Evolution (EVG) late this afternoon. It appears that Beesons, which has been suffering more than most from the technology fallout, is in a weaker position than previously imagined.
The terse statement merely said that the two companies are in discussions, and that a further announcement will be made 'as and when appropriate'. It stressed that nothing might come of the discussions.
Evolution was itself formed from the merger of Christows, a private client fund management group, with eVestment, an internet investment business. It was later joined by Evolution Capital, a strategic research and advisory business.
Further details are hard to ascertain; however, it appears that cost cutting will be fairly high on the agenda. Since flotation, Beesons has pinned its hopes firmly to the technology boom, and has seen its fortunes wane recently in line with the demise in particular of technology IPOs.
In late trading, Beeson Gregory put on 8p to 96p, capitalising the business at £66 million. It was floated at 300p in April 2000. Evolution Group dropped 0.5p to 64.5p, giving it a market cap of £74.7 million.
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