Cazenove, the broker to the blue-bloods reported to be in talks with JP Morgan and Lehman Brothers, admitted it was reviewing tie-up offers as it unveiled a seven-fold surge in first quarter profits.

David Mayhew, the Cazenove chairman, told shareholders that the 180-year-old broker was "evaluating outline proposals" from other firms.

"These are being benchmarked against our existing strategy of remaining independent," he said.

However, he declined to reveal the identity of suitors and take questions on negotiations.

"This process is still work in progress and there is no more that I am able to say," he said.

While Cazenove was earlier this year linked with Barclays, the third-ranking UK bank, recent speculation has centred on Lehman Brothers and JP Morgan, the Wall Street giants. Mr Mayhew has reportedly flown to the US to discuss a joint venture arrangement with JP Morgan bosses.

Cazenove reported revenues up 49 per cent to £71 million for the May to July period, after advising on Centrica's disposal of the AA, International Power's purchase of Edison Mission Energy power stations and Marks & Spencer's defence against Philip Green. Profits soared from £2.1 million to £14.8 million.

The total level of funds under management fell to £7.4 billion at the end of July compared with from £7.6 billion three months before despite "healthy inflows" of £270 million in new money.

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