Investment bank Robert Fleming has been seeking to take full control of its Asian merchant banking unit Jardine Fleming but talks may have collapsed according to reports.
Robert Fleming, with a 50 per cent stake in Jardine Fleming, wants to buy out its Hong Kong-based partner Jardine Matheson, which owns the remaining 50 per cent, according to reports in Britains Sunday Telegraph.
Negotiations have snagged because Robert Fleming wants to pay cash for the deal. But Jardine Matheson wants shares in Robert Fleming.
However, a Robert Fleming spokesman denied that talks are underway.
There are no talks on the ownership of Jardine Fleming.
City observers say Robert Fleming has been eager to take full control of Jardine Fleming after a scandal involving a senior fund manager in Hong Kong, who was found diverting money from one fund to another.
Jardine Fleming was fined heavily after the incident.
Robert Flemings tough new chairman John Manser is reportedly determined to take full control of Jardine Fleming to prevent a repeat.
Talks reportedly took place at the end of the year 1997.
Jardine Fleming, founded in 1970 with [pounds sterling] 50,000 according to City lore, has been a fabulous success story. Jardine Fleming has about $19 billion under its management.
