Rothschild London-Paris merger

EUROPEAN banking dynasty Rothschild today decided to merge its London and Paris interests under the leadership of Baron David de Rothschild.

The head of the English branch of the family, Sir Evelyn de Rothschild, who will be 72 next month, will retire from day-to-day management after 21 years running the UK bank, NM Rothschild.

The English and French families will have equal stakes in a new holding company with the French family, led by Baron David, paying a substantial sum of cash to the English side, whose total holding in Rothschild companies is reckoned to worth some £400m.

Sir Evelyn will remain chairman of NM Rothschild, but stands down from the board of parent Rothschild Continuation. A new Dutch firm, Concordia, will take control of Continuation and Paris Orleans which holds the French side's interests.

Baron David will chair Continuation and take management responsibility for the London bank. David, 60, is already senior partner of the French bank.

Sir Evelyn said: 'We have for several years been strengthening links between the English and French families so the Rothschild Group is better able to operate in a co-ordinated way and compete effectively in international markets.'

The baron's English cousin, Amschel Rothschild, committed suicide in 1996. He was being groomed to succeed Sir Evelyn. Lord (Jacob) Rothschild set up his own investment bank in the 1980s.