Merchant Cap in Keydata discussions
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Merchant Capital is in talks with Keydata administrator PricewaterhouseCoopers over the sale of its structured products book and residual third-party administration, Money Marketing understands.
Meteor Asset Management has withdrawn its bid for Keydata’s investment book and associated admin. It was the front-runner to buy the book which originally totalled £180m as well as some third-party admin business but talks with PwC broke down.
Arc Capital &Income was put into administration last October after compliance errors on Lehman-backed products’ promotional material.
The firm was sold to Merchant Capital in November and a number of ACI staff, including director John Gracey, transferred to the new business.
The Financial Services Compensation Scheme is still investigating whether it can accept claims from investors in some ACI’s Lehman-backed plans.
PwC says it is in talks with a number of parties about the sale of Keydata assets but would not comment on individual firms.
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