Giles and Oval are unlikely to merge as a deal would present a host of problems, a leading analyst says.
John Borgars, award-winning analyst with independent research firm Equity Development, and an expert on private company M&A, says the deal would hit staff retention and morale.
A merger would also prove less earnings-accretive than the current strategy of buying smaller brokers, Borgars says.
Borgars analysis will put another nail in the coffin to the prospect of the two consolidators merging.
In 2008, Chaterhouse approached Oval with a plot to merge the two businesses, which was later rejected by chief executive Philip Hodson and his board.
Since then there has been speculation that the two might merge at some point to help give critical mass for a flotation.
Borgars also gives his opinion on the state of Towergate following the recruitment of ex-Aviva UK chief executive Mark Hodges, saying he believes Advent will add essential experience to the eventual flotation.