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Network Data in broker deal

Network Data says redundancies are likely as a result of its acquisition of Manchester Building Society’s broking subsidiary MBSL.

Last week’s deal will see the network issue £2.2m of preference shares to the building society while MBS will acquire £250,000 of shares in the network in exchange for cash.

Network Data this week holds an extraordinary general meeting in accordance with stockmarket rules because its net assets have fallen below its called up share capital. The comp- any has accepted a £5m offer for its office headquarters.

Network Data previously had 500 firms and MBSL 200 and the merged group will have 700 firms and 900 advisers.

ND chief executive Richard Griffiths says after a review of overlapping resources between the two networks, it should be possible to reveal how many jobs will be cut within a week. MBSL curr- ently employs 50 staff while Network Data has 76.

Griffiths says: “Consolidation of the network market is long overdue and we expect the trend to accelerate with many of the smaller networks struggling in the current weak market conditions.”

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