UK stockbroker Panmure Gordon hopes to end market chatter about its ability to survive the downturn with the sale a 40% stake to private equity firm BlueGem today, but the jury is out over whether the company can turn around its fortunes as public company or whether this is the first step towards a take-private.

Tim Linacre, chief executive of Panmure Gordon, said that the rationale for the deal was to strengthen the company's balance sheet so that it is absolutely financially robust. He said it will not involve radical changes to the way the business is managed.