Schroders' shares rise as analysts give Caz deal the thumbs up

Shares in asset management giant Schroders were up sharply in early trading after the group announced it had agreed a deal to buy Cazenove Capital for £424m.

Shares in FTSE 100-listed giant Schroders were up 3% at £21.56 iby 09:00am, the second highest riser behind Aberdeen, as investors reacted to confirmation of the offer price. Under the terms of the deal, Cazenove's £17.2bn in assets under management will move across to Schroders, pushing its total AUM to £229.2bn by adding £5.1bn to its funds business and creating a £28.4bn private banking business. The acquisition will cost £394m, with Schroders setting aside an additional £29 million as the "effective future cost of existing deferred share compensation arrangements" for Cazenove emp...