Wealth manager Tilney has said it is in talks regarding a merger with rival Smith & Williamson which will create a firm with assets under management in excess of £45bn.
In a statement, Tilney said: “Following recent media speculation, the Board of Tilney confirms that it is in exclusive discussions with Smith & Williamson about a potential combination of our businesses.”
The firm added: “These discussions are ongoing and there can be no certainty that a transaction will proceed. A further announcement will be made as and when appropriate.”
Tilney had then launched an alternative bid, but Smith & Williamson instead chose to pursue a deal with Rathbones that ultimately collapsed.
Following the failed tie-up talks with Rathbones, Smith & Williamson – which is also a top ten UK accountancy firm - publicly committed itself to a stock market listing by 2020.
Tilney, which has a large financial planning arm, was acquired by private equity firm Permira from Deutsche Bank in 2014.