Would Schroders pay more than £500m for Cazenove?

At first glance, Schroders' confirmation that is in talks to acquire Cazenove Capital makes perfect sense.

Far from looking weak in the aftermath of UK equity head Richard Buxton's departure, acquiring a business with £18.7bn in AUM would serve as a timely reminder of the group's position as one of the UK's largest fund managers. But does it makes sense on a financial basis? The initial signs here, too, are positive: the strength of Cazenove's business stands in stark contrast to some of its competitors. A look at Cazenove's annual results for 2012 shows EBITDA rose 14% to £35.9m, while assets under management rose 15% to £17.2bn. That AUM growth was fuelled by its wealth arm's intermed...