Quilter shares surge on NatWest takeover talk

Shares in Quilter jumped on Monday after reports that NatWest is in the early stages of studying a bid for the wealth management firm.

A takeover would be the biggest for the British lender since the bank went into taxpayer ownership at the height of the 2008 banking scandal with a £46bn bailout.

Private equity firms including CVC, Bain Capital and BC Partners have also reportedly expressed interest in the FTSE250 group. Quilter, with a value of £1.4billion, is said to be one of many wealth management firms that lack scale and investment to compete with larger players and banks, the Mail on Sunday newspaper reported.

Its shares are down a third this year to their lowest since it went public in 2018 following the break-up of its parent, financial services firm Old Mutual.

Quilter is on NatWest's list of potential targets as it looks to grow its wealth management business. It already owns Coutts whose clients include the Queen, members of the aristocracy and wealthy City professionals.

In June, chief executive Alison Rose said NatWest had "significant excess capital" and would consider an M&A that can drive "compelling shareholder value".

Reporting by Frank Prenesti at Sharecast.com