The takeover of UK merchant bank Close Brothers by a consortium of Cenkos and Landsbanki is a "done deal", according to the Daily Telegraph.

The takeover of UK merchant bank Close Brothers by a consortium of Cenkos and Landsbanki is a "done deal", according to the Daily Telegraph, which cited an unnamed source close to the deal. The newspaper said Cenkos and its Icelandic partner were close to finalising the due diligence. Landsbanki would acquire the Close banking division, while Cenkos would secure the asset management and corporate finance businesses, as well as the market-maker Winterflood Securities. Cenkos was co-founded two years ago by Andy Stewart after his departure from Collins Stewart and was listed on the junior AIM market in London last year. A recommended deal would represent a huge turn round in relations between the protagonists after Close's rejection of a £1.4 billion bid from Cenkos and Landsbanki in November. It is understood the change follows a shake-up in the Close Brothers advisory team, with boutique advisory firm Greenhills handling the sale process, sidelining Close's long-term advisor UBS. Despite the negotiations, US private equity house Blackstone is understood to still be interested. Blackstone is said to be lining up a consortium, possibly involving Collins Stewart, which is interested in acquiring the Winterflood business.