Weir ditches broker BAML over conflict of interest

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”.

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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.