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Billion offer: Rothschild family wants to take investment bank off the stock exchange


A private ownership structure is more suitable: the Rothschilds want to buy their investment bank from the other shareholders. This had recently announced that it was a “challenging year”.

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Stock exchange in Paris: The shares of Rothschild & Co. are still traded here



The Rothschild banking family is planning to restructure its investment bank Rothschild & Co. and delist it from the Paris Stock Exchange.

Thanks to the business model, which has been expanded to include asset management, company investments and financing over the past three decades, the family no longer needs access to the capital markets to the same extent, is how the family holding company Concordia justified the takeover bid for the remaining shares in Rothschild & Co.

The institute is best known for providing independent advice on mergers and acquisitions.

Concordia said that the individual divisions would be better rated based on their long-term development than on short-term business figures.

»This means that a private ownership structure is more suitable than a stock exchange listing.«

On the Paris Stock Exchange, Rothschild & Co. is valued at around 3.6 billion euros after Concordia's takeover bid announced on Monday.

The French, English and Swiss (Edmond de Rothschild) branches of the family together own 55 percent of the bank and hold 69 percent of the voting rights.

Of these, 38 percent of the shares are held by Concordia, which offers the remaining shareholders 48 euros per share, 19 percent more than the closing price on Friday.

In addition, the family holding lures with a special dividend of eight euros per share if the offer is successful.

The general meeting is scheduled to vote on the plan on May 25th.

Difficult times for investment banking

In the first nine months of last year, the investment bank increased revenues to EUR 2.2 billion and grew in all four business areas.

Now, however, she is preparing for a "challenging year 2023" after the weak economy is putting capital investments under pressure and the income from the consulting business at many investment banks has recently plummeted.

In 2008, the family bundled their banking business into today's Rothschild & Co. holding company.


Source: spiegel

All business articles on 2023-02-06

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