Analysis: Is Schroders right to pursue Cazenove?

This morning it emerged Schroders has entered bid talks to acquire Cazenove Capital.

If a deal is reached, the firm will plug a number of gaps in its product range and, crucially, will shore up its UK equity desk after Richard Buxton's shock resignation last week. The £6bn question of how much money will follow Buxton when he joins Old Mutual Global Investors (OMGI) will remain unanswered until he joins the firm in June. Given Buxton's superb long-term track record and unique investment style, Schroders has cause for concern, particularly after OMGI also secured the services of his protégé Errol Francis. In 2010, Schroders was dealt a similar blow after widely resp...