Launch of New Stockbroking Subsidiary
Old Mutual PLC
10 May 2000
OLD MUTUAL PLC
Launch of new UK institutional stockbroking subsidiary - Old Mutual
Securities
A major new name in UK stockbroking is being created by Old Mutual plc
('Old Mutual'), the life assurance and financial services group, through
the merger of its subsidiary, Albert E Sharp Securities, with the
institutional broking and corporate finance division of Greig Middleton.
The new City-based firm will have around 120 staff - of whom approximately
70 are in London, 40 in Birmingham, and 10 in other UK offices - and will
be focussed on supporting the growing demand for advisory services from
smaller and mid-cap UK companies.
Creation of Old Mutual Securities follows the acquisition of Albert E
Sharp by Old Mutual in August 1998 and the recently-completed £525
million takeover by Old Mutual of Gerrard Group plc, parent company of
Greig Middleton.
Under the leadership of Edmond Warner, who was appointed Chief Executive
in August 1999, Albert E Sharp Securities has broadened significantly its
business, from its traditional base in manufacturing industry to embrace a
number of 'new economy' sectors, begin market making, and strengthen its
corporate broking and corporate finance capabilities.
Since his arrival last year, Edmond Warner - previously Head of European
Equities at BT Alex Brown - has strengthened the firm's research
capability with a number of senior analyst appointments, including James
Montier (global strategy); George O'Connor (technology); Greg Feehely
(leisure); Simon Lapthorne (media) and Philip Morrish (chemicals). Other
recruits include Mike Pauk (Head of Trading) and Graeme Cull (Head of
Corporate Broking).
Through the merger with Greig Middleton, the enlarged firm will now have
research capabilities in a number of further new sectors, including bio-
technology, oil exploration and production, and telecommunications. Greig
Middleton also has a significant presence in corporate finance, where it
has recently completed transactions for clients including Applied Optical
Technologies, Fibernet and LA Fitness.
For the future, Old Mutual sees considerable scope to continue the growth
of its newly merged securities business, as an integral part of its
strategy to grow the group's financial services activities outside the
South African base of its core life assurance operation.
In particular, there are a number of additional sectors where Old Mutual
Securities is seeking to provide research coverage, and there are plans to
develop its international sales and to further strengthen its corporate
client base.
The new firm will operate from 30 May, when its research capability will
span 300 companies in 15 sectors, its traders will make markets in some
200 stocks, and it will have a corporate client list of more than 100
companies.
Eric Anstee, Finance Director of Old Mutual, comments:
'I am delighted that we are now building on the successful growth of
Albert E Sharp under our ownership by this merger with Greig Middleton.
This represents the first integration of the former Gerrard Group
businesses with existing Old Mutual operations and reflects the synergies
between the two group's activities, which we highlighted at the time of
the acquisition announcement.'
Edmond Warner, Chief Executive of Old Mutual Securities, adds:
'With Old Mutual's support, we have the critical mass and market position
to continue building Old Mutual Securities into a major force in UK
stockbroking, so filling the gap left by those UK brokers, bought by
European banks, who have sought to expand in Europe at the expense of
their traditional UK client base.'
ENQUIRIES:
Old Mutual PLC Tel: +44 (0)20 7569 0100
Eric Anstee, Finance Director
James Poole, Director of Corporate Communications
Old Mutual Securities Tel: +44 (0)20 7489 4691
Edmond Warner, Chief Executive
College Hill Tel: +44 (0)20 7457 2020
Gareth David Email: gdavid@collegehill.com
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