Tata, Orix in takeover talks with British investment bank: report

15 December 2007

Mumbai: Tatas and Japanese financial group Orix are in talks with British investment bank Close Brothers Group for a possible takeover, the Financial Times reported.

Close Brothers, which earlier rejected a £1.4 billion ($2.84 billion) worth 950 pence per share in cash bid by boutique advisory firm Cenkos Securities and Iceland's Landsbanki, said it had been approached by new suitors.

Private equity firm Blackstone was also reported to be weighing the possibility of making a bid for Close Brothers, the report said.

Close Brothers' advisers Greenhill and UBS have been in touch with possible buyers for the whole company, and held a meeting with Orix in London.

Orix, which is listed in Japan, already holds a 1.1 per cent stake in Close Brothers and has been building its presence in the UK through its subsidiary and has roped in mergers and acquisitions specialist Houlihan Lokey of the US for expansion.

There have not been any serious discussions with the Tatas, which has a financial arm but no history of interest in investment banking.