TOWERGATE ENDS FINANCING TALKS WITH CANDOVER

Expanding UK-based broking operation Towergate has ended negotiations over fresh financing from private equity firm Candover, according to a report in yesterday’s Sunday Telegraph . Peter Cullm was reportedly planning to sell a 25% stake in Towergate for about £800m, but had apparently pulled out after a disagreement over the likely level of future earnings. Candover was also thought to have been hampered by the recent squeeze on liquidity in the financial markets. The report claimed that Towergate was now likely to look for an alternative investor. The sale of a 25% stake solely by Mr Cullum would reduce his stake to 40%, while a sale of 25% through an increase in the number of shares would bring his interest down to just under 49%. Senior executives at Towergate currently hold a 22% stake in Towergate.