Investment bank Cazenove, the Queen's stockbroker, has put its flotation plans on hold because of weak market and business conditions.

The bank, broker to about half of the companies in the FTSE 100 index, had originally planned to convert to a publicly listed company by the end of April this year.

Chairman David Mayhew said he was disappointed the firm had not met its original timetable for a flotation.

But he stressed the 180-year-old bank intended to list when conditions improved.

Job cuts

Cazenove had planned to float on the Alternative Investment Market (AIM) by April to coincide with its second birthday as a company.

The firm ended 177 years as a partnership in April 2001 when it incorporated itself, raising �200m, and selling shares to City institutions.

But it has been hit by the worst downturn in the investment banking industry in 30 years.

In November, it cut 90 jobs from its London office, representing 8% of its staff, after reporting a 33% fall in annual profits.

Share options

The bank decided to go public to make it easier to compete with global investment banking rivals such as Goldman Sachs and Morgan Stanley.

Management also hoped to attract and retain key staff with share options.

The bank is trying to expand into continental Europe, branch out into mergers and acquisition and advisory work and strengthen its asset management business.

There has been persistent speculation that Cazenove might be sold.

But management has said repeatedly the bank is not looking at this as an option.

Mr Mayhew said: "While I am naturally disappointed that we have not met our original timetable for listing due to market circumstances, it is clear that incorporation has brought with it many of the benefits we envisaged.

"These include a new and effective management structure as well as the introduction of permanent share capital."