In an official announcement, the WH Ireland Group has confirmed it is in discussion with Cantor Fitzgerald Europe over a possible acquisition.
It may also be a transfer or introduction of certain assets of part of Cantor Fitzgerald Europe’s Mid Cap and AIM Corporate Finance business. Discussions are with regards to Candor Fitzgerald Europe’s corporate finance business.
However, talks are in preliminary stages and no transaction is yet guaranteed.
WH Ireland CEO Phillip Wale joined the firm from Cantor Fitzgerald in 2018.
In addition, Cantor Fitzgerald has decided to trim employee headcount to save costs in the face of a downward trajectory in the economy caused by the Covid-19 crisis.
The downsizing will involve hundreds of job cuts across various units of the firm.
The firm has a staff strength of around 12,000 globally. The job cuts will reportedly constitute below 5% of its workforce.
The firm’s CEO Howard Lutnick anticipates a hit from an extended economic downturn.
“We have made prudent headcount and cost reductions to position the firm for the uncertain macroeconomic conditions expected for the remainder of the year,” the firm noted.
The firm’s capital markets and commercial real estate divisions have reportedly already implemented the culling.
WH Ireland has forecast operating loss before exceptional items of £2.2m ($2.7m) for the year to March as a result of the Covid-19 pandemic.
The firm also predicted a 10% fall in revenue to £21.3m from £23.7m.
Corporate client wins in Corporate and Institutional Broking and re-pricing actions in Wealth Management is said to have driven positive momentum at the firm across the year.
The month of January reported a small profit. However, the following two months registered a loss, hit by the pandemic.
“Progress on revenue and cost actions were sufficient to see a small profit in the month of January consistent with our expectation of returning to monthly profitability by the start of the new financial year.
“However, both February and March experienced a loss, as market levels and corporate activity were impacted by the COVID-19 pandemic.”