Cazenove's private clue on marriage

CAZENOVE, the Queen's stockbroker which has put itself on the auction block, stopped short of naming its preferred bidder today.

But shareholders at its private annual meeting had little doubt that pole position is held by JP Morgan, which is offering a joint venture that could see Cazenove investors collect up to £500m.

Cazenove chairman David Mayhew and a team of his senior executives are reported to have met their opposite numbers in the New York offices of JP Morgan Chase as talks on the deal move on apace.

Mayhew said: ''his is an important decision and one which we want to ensure is correct for everyone involved. We are committed to giving it the attention and time it deserves and needs.'

He declined to take questions on the subject and offered no more detail.

But Mayhew revealed that first-quarter profits had surged from £2.1m to £14.8m even after paying out bonuses. Revenues rose 49% to £71m.

The Cazenove board is said to favour the JP Morgan offer because it allows them to retain a degree of independence and promises to keep the 181-year-old name of the business, which is seen as a major part of its value.

Rival offers from Lehman Brothers and rumoured interest from Citigroup are said to offer little guarantee that the name would survive intact.

Today's meeting was open only to shareholders including current and former members of staff and the handful of City institutions which own a 9.2% stake between them.