WHO GETS HAMBROS?

This article reports that the decision by half the Hambros PLC clan to pull out of the family bank deprives the London City, England establishment of yet another prop. Apart from Rothschilds, Hambros PLC is the last of the great British merchant banks to be managed directly by the controlling family. Family banks have been central to the City's reputation for financial excellence, but they have also attracted persistent criticism. With its present share structure, Hambros would have great difficulty in raising large amounts of cash. Hambros Trust, the family's investment vehicle, controls 49.9% of the votes through its 15% stake in Hambros PLC, the holding company which owns the bank. This represents about 90% of the Trust's assets. The plan is to convert the Trust's high voting shares into ordinary equity, leaving it with a holding of around 15%. This will then be sold off, but only to a buyer approved by the bank's management board. Hambros will be like any other public company, vulnerable to takeover bids.