Asda drops Warburg as broker

Asda, the supermarket group, confirmed yesterday that it had dropped Warburg Securities as joint broker, calling in James Capel to work alongside Cazenove. Warburg also acts for Sainsbury, Asda' rival. Archie Norman, Asda's chief executive, was understood to have become concerned about possible conflicts of interest.

Warburg has suffered a bout of client departures in recent months, including Glaxo Wellcome and Emap. Asda is expected to bounce back into the black when it announces full-year results later this month. Forecasts range from pounds 210m to pounds 245m compared with last year's post-exceptional loss of pounds 125m.