Morgan Stanley picks up two more blue-chip clients

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The Independent Online

Morgan Stanley has picked up two new corporate broking clients, British Land and United Business Media.

Morgan Stanley has picked up two new corporate broking clients, British Land and United Business Media.

The US investment bank has now won five broking clients listed on the FTSE 100 index of blue chip stocks within three months, a record. It knocked out Cazenove when it won the broking mandate for the banking group HBOS on 1 February. Cazenove has lost several broking mandates, notably Diageo, the spirits group, since it sealed a joint venture with JP Morgan Chase last November.

Since February, Morgan Stanley has also wrested the mandate for Shire Pharmaceuticals from Merrill Lynch, and wonmandates for International Power and Scottish Power. Together with Alliance & Leicester, Morgan Stanley now has six clients in the FTSE-100 and 18 broking clients in total.

Morgan Stanley set up its corporate broking team in April last year when it poached five senior bankers from Merrill Lynch's broking arm, led by Paul Baker, who became head of Morgan Stanley's broking team. He has added several more bankers from Merrill Lynch, UBS and CSFB to boost the team to 14 people.

The property group British Land yesterday appointed Morgan Stanley alongside its existing broker UBS. At UBM, Morgan Stanley replaces Dresdner Kleinwort Wasserstein as joint broker alongside Merrill Lynch.

An insider said there had been an unprecedented number of broking pitches recently and there were more to come, driven by the changing ownership of UK companies. While in the past, UK institutional investors dominated the domestic landscape, the balance of power has shifted in favour of the big international institutions and hedge funds. This has prompted many companies to reassess which banks they want working for them.

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