Close Brothers has rejected a £1.4bn bid from rival boutique Cenkos Securities.
Cenkos, which is headed by Andrew Stewart, the co-founder of Collins Stewart, made a consortium bid alongside Icelandic bank Landsbanki last week but the Close board quickly turned down the offer.
The board said: “The directors consider that this offer is wholly inadequate and accordingly have rejected the approach.”
Close Brothers also indicated that it has no intentions to continue talks with Cenkos.
If the 950p a share deal had been accepted, Cenkos, which specialises in small and mid-cap companies, would have acquired the asset management and corporate finance operations while Landsbanki would have taken on Close’s lending business.
Cenkos has yet to follow up on its offer however it is understood that Stewart believes that the deal “is not dead in the water”.