JP Morgan may takeover alliance with Cazenove

An alliance between the Queen's stockbroker and US investment bank JP Morgan may come to an end before February 2010.

The alliance, a 50-50 venture called JP Morgan Cazenove came into existence in 2005 with an agreement that provided for a full-scale takeover by American bank. The American bank could take over the joint venture by the end of the year, according to analysts.

Meanwhile, a spokesman has confirmed that talks had taken place and any decisions about the future will be made in the best interests of shareholders, clients and staff.

Anyalysts say that a prior agreement over price had to be reached before any decision could be taken and according to reports both parties are keen to agree on a deal earlier than the February deadline.

While JP Morgan is keen on preventing key Cazenove talent from leaving, executives at the blue-blooded stock broker are said to be looking for cashing in what has been a stellar year.

Chairman David Mayhew led JP Morgan Cazenove acts for a large number of FTSE 100 firms and has earned substantial fees from the recent share placings.