Two of the best known names in City of London broking circles are to disappear later this year after Icelandic bank Landsbanki today agreed a £60m (€88m) takeover of Bridgewell, scotching rumours that talks had foundered.

Landsbanki, which already owns UK broker Teather & Greenwood, this month emerged as the frontrunner among the potential suitors for Bridgewell, and the Icelandic bank today confirmed it has reached an agreement with Bridgewell at a price of 125p per share.