Weir Group today said it has dropped joint corporate broker Bank of America Merrill Lynch (BAML) after the bank’s appointment by a rival engineering firm created a conflict of interest.
The Glasgow-based group said it had terminated its deal with BAML “following the recent emergence of a new and undisclosed conflict of interest arising from its engagement as broker by another company”.
It did not name the other company involved but it is understood that rival engineer IMI – headed by former Weir chief executive Mark Selway – appointed BAML as its joint broker within the last month, to serve alongside JP Morgan Cazenove.
Weir, which continues to employ UBS as its corporate broker, said a further announcement will be made “in due course” about future broker engagements.
The group last week reported a 7 per cent drop in first-half operating profits to £201 million as strong growth in oil and gas failed to overcome weakness in its mining markets.