J.P. Morgan to bid for Cazenove stake

LONDON (Reuters) - U.S. investment bank J.P. Morgan (JPM.N) will offer 500 to 525 pence per share to buy out the remaining 50 percent stake in stockbroker Cazenove, according to a report in the Sunday Telegraph.

The deal, which is expected to be signed in the next few weeks, values the Queen's stockbroker at close to 2 billion pounds, according to figures close to the deal, said the newspaper.

Cazenove, which has been a partnership for most of its history, was valued at 700 million pounds when JP Morgan bought 50 percent of the group in a deal in 2004.

The move will bring a windfall of around 1 billion pounds to shareholders, who are primarily current or former employees.

Reuters reported last month that the owners of JPMorgan Cazenove's joint venture were keen to make a decision on whether J.P. Morgan should buy out its UK investment banking partner before bonuses are set for staff by early January.

Cazenove and JP Morgan declined to comment.

(Reporting by Lorraine Turner; Editing by Hans Peters)