RPT-JP Morgan to bid over 500p for Cazenove stake-report

(Repeats Nov. 15 story to additional subscribers with no changes to text)

* Offer values UK stockbroker at 1.97 billion stg

* US bank to make offer for 50 percent stake in next few wks

LONDON, Nov 15 (Reuters) - U.S. investment bank J.P. Morgan (JPM.N) will offer 500-525 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 ($3.32 billion), 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. [ID:nLN732443]

Cazenove and JP Morgan declined to comment. ($1=.6017 Pound) (Reporting by Lorraine Turner; Editing by Hans Peters)