5-Aug-14
If the investment banking business is the key to trust your customers, Bank of America Merrill Lynch One day, they want to forget Monday.
Bank of America is publicly dismissed as a result of the company's broker Weir Group emergence of a "new interest and undisclosed conflict", and when Bank of America was appointed as the company's brokers by IMI, the engineering smaller competition opponents.
Potential conflicts of interest inherent in this event investment bank stark reminder.
Business brokers - a unique city business - has caused some banks dilemma, because it is labor-intensive, rather than the intrinsic profitability.
The company paid a symbolic annual fixed brokerage services for businesses, including updating the action in the stock price of the company, regulatory changes, and its shareholder base, and the introduction of existing and potential investor’s executives.
When companies raise funds or to make transactions actinomycetes. However, the pay-off can be a long time coming and is not guaranteed.
Bank of America has received a third of the cost in 2000 Weir has been paid to the bank since, according to Thomson Reuters. Big contract should have gone to the bank in April, it acts as the Finnish Metso opponent's Will € 46 tried to buy the lead consultant.
Although Weir ended the revised offer after Solidium faced continued opposition from these negotiations, Finland's state investment fund, a major shareholder Metso, it can return to the acquisition trail soon, it will produce a favorable fee Bank of America has is advisory, and financing a potential deal.
Bank of America did not tell Will, it has landed the task of IMI, which exacerbated the British engineer. "In the relationship between brokerage firms has some degree of etiquette," said veteran industry. "We love to win new customers, but if there is anything new account conflict, we already have, it must be extremely cautious."
Increase the delicate situation is the fact that IMI chief executive Mark Selway, Weir's CEO until 2009 Will also been linked to speculate on the possible acquisition of IMI, but informed sources said the situation is not likely.
"The two companies jointly in oil and gas, they have a substantial overlap competitors' products and target the same end markets," a person close to the situation said. This leads to competition Weir who questioned Bank of America will show a potential transaction, first both Will and IMI are looking for a similar overseas transactions to increase their business.
A source close to Bank of America, said the bank took the view, working with IMI, there will be no direct conflict, its existing relationship with Will. The source said the bank will be designated banks for business two different teams; it is not uncommon for investment banking advice from similar industries.
Bank of America declined to comment.
But with increased competition among banks brokerage and consulting tasks, it is not the potential for conflict.
Land a high-profile task of the game is to demonstrate in front of the can when Anglo American, while the top of the FTSE 100 mining company, invited banks to pitch for its brokerage tasks. Bank of America - acting as an intermediary company Anglo American's Financial Times rivals BHP Billiton - which investment banking business in accordance with the process of informed people.
The company finally decided to appoint Morgan Stanley, UBS replaced (UBS), and retained Goldman Sachs as the company's broker, according to a spokesman for Anglo American.
Now, with the acquisition of the UK market hotting up, but this situation is more likely, which means that other banks may be subject to sudden loss of customers
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