Wood Mackenzie To Be Merged With Alex Brown

Edinburgh, Wood Mackenzies home town, is also likely to prosper under the new owner, which has demonstrated for the second time this year its belief that US-UK investment banking can thrive outside the money centres of New York and London. Bankers Trust intends to merge the unit with Alex. Brown, the Baltimore- based investment bank it bought for $1.7 billion (1 billion) this year.

But it is considering using the name BT Wood Mackenzie, at least for operations outside the US. To some extent, that reflects Alex. Browns low profile in Europe, in spite of its being the US market leader for initial public offerings. More important, however, is the commanding reputation, especially in research, that Wood Mackenzie retains after a brief mid-1980s sojourn as part of Hill Samuel and a decade in the fold of National Westminster Bank. Donald Johnston, Bankers Trusts European head of mergers and acquisitions, on Wednesday praised its awesome analysts.

 

Extel Ranking of Investment Analysts, NatWest Securities came first in overall quality of frontback research, with its integrated oil and oil exploration and production teams first and third respectively in sector league tables. It is broker to 12 FT-SE 100 companies.

Bankers Trust is aiming to recruit bankers in Europe to get the full advantage of industry-led research. Johnston said he had been struck by the remarkable sense of cohesion and corporate culture at Wood Mackenzie.

Financial Times

One analyst, who had been with the company for more than 20 years, said without a trace of irony: Through sticking together as people, Wood Mackenzie has managed to survive. Edmond Warner, NatWest Markets head of global research, said: Theres been real continuity of employment here with several people going back to Big Bang. Seven former partners, two senior market makers and numerous analysts and traders had survived the two changes of ownership since 1985. The deal reunites Wood Mackenzie with WM, the Edinburgh-based fund management performance measurement specialist which Bankers Trust bought 10 years ago. Including Wood Mackenzies research and consultancy operations, Bankers Trust will employ 900 staff in the Scottish capital. In London, Bankers Trust may consolidate operations into a single location. The NatWest-owned building in Bishopsgate, where Wood Mackenzie occupies two floors, is a prime contender. Bankers Trust appears to have soothed any qualms about the prospective change of ownership by taking

Mr Warner and Joseph Lafferty, global head of cash equities, to Baltimore to meet their counterparts at Alex. Brown. Mr Warner said the trip gave us a high degree of comfort that they were sensitive to the history of our business. That history depended on a research-led culture, he said, and independence. People like working here partly because they feel they can speak their minds. He could detect no discernible difference between Alex. Brown executives and those from Bankers Trust: It was quite difficult to differentiate the two groups, which was amazing just a couple of months after completion. Mr Lafferty will be co-head of global equities, managing pan-European equities from London. Mr Warner will become head of global equities business strategy. Copyright Financial Times Limited 1997. All Rights Reserved.Brown Bankers Trust to combine stockbroker and bank write, Clay Harris and Jane Martinson.