Spencer quits Numis after shares scandal
Tory party treasurer Michael Spencer has stepped down as chairman of stockbroker Numis and sold most of his stake just weeks after admitting he had secretly used the shares as security for a loan.
Stakeout: The tycoon has pocketed £15.7m from the sale
Numis said Spencer, who is a close personal friend of Conservative leader David Cameron, was leaving to focus on his other business interests. The City tycoon has also sold his 12% share in Numis, netting himself £15.7m.
Spencer, who is one of Britain's richest men with an estimated personal net worth of more than £1bn, recently announced that he and his wife Lorraine, with whom he has three children, are separating after 25 years of marriage.
His departure from Numis comes less than two months after he found himself at the centre of a stock market row about secretly pledging his shares in Numis against a loan for his private company.
A spokesman for Numis claimed Spencer's sudden departure is not related to the shares controversy.
However, the debacle has echoes of the one that enveloped David Ross, the former deputy chairman and cofounder of Carphone Warehouse. Ross was forced to quit his three board positions - at the mobile phone retailer, transport group National Express and storage company Big Yellow - because he failed to reveal he had pledged shares in them to raise loans to fund his private businesses.
Spencer is also the founder and chief executive of the inter-dealer broker Icap.
He said: 'It has been amazing to be part of Numis over the last five years, helping it grow from a firm with 62 people and 40 corporate clients to one of the leading independent investment banking businesses that it is today.'
Spencer will remain as chairman of Numis (down 9½p, or 7%, at 125½p) while a search for his successor is conducted.
The furore over Spencer's shares pledge is not the first time he has been in hot water over his share dealings.
In 2004, he was forced to explain his purchase of two million Marks & Spencer shares a day after a drinks meeting with Sir Stuart Rose, who became the chain's chief executive shortly afterwards.
Numis chief Oliver Hemsley said the company had been 'incredibly fortunate' to have Spencer to help guide the business. He added: 'He will be missed, but will remain a close friend of the firm.'
Numis said this week it remained financially robust and was in a strong position to survive the economic downturn.
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