Prudential became the latest big company yesterday to drop JPMorgan Cazenove for another broker. The insurer will instead take advice from Goldman Sachs, alongside UBS, on compliance with stock market rules and how best to communicate with investors.
Prudential said the switch had followed a routine review of broking relationships after Mark Tucker took over as chief executive last year. Jon Bunn, a Prudential spokesman, said: "From time to time, we review our advisers in line with corporate governance best practice. That's what we did here."
City sources said Mr Tucker had initiated a beauty parade of brokers to pitch for Prudential's business after early meetings with major shareholders proved difficult. JPMorgan Cazenove declined to take part in the parade, feeling its relationship with Prudential had run its course.
Cazenove, Goldman and UBS managed the £1bn rights offer for Prudential in November 2004. JPMorgan has been the insurer's biggest lender over the past five years.
Goldman's appointment was seen by some as a move to bolster Prudential's defences against any unwelcome predator. Bid talk helped the shares gain 23p to 576p. The City wants Prudential to tie up with the rival Aviva, which rose 13p to 719p.
Since the blue-blooded Cazenove teamed up with JPMorgan, the US investment bank, last February, their joint venture has lost 13 corporate broking clients.Reuse content