Cazenove, the 181-year-old UK corporate broker, has eliminated its pension fund deficit as part of plans to make it more attractive to buyers ahead of a possible takeover or flotation.

A source close to Cazenove said that the decision to address the deficit came with a possible takeover or share offering in mind. "A pension scheme deficit can be an issue in terms of a corporate event such as a flotation or sale," the source said.