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G4S swaps advisers after ISS deal flop
March 1, 2012 / 10:26 AM / 6 years ago

G4S swaps advisers after ISS deal flop

LONDON, March 1 (Reuters) - Britain’s G4S Plc, the FTSE 100 group in charge of security during the 2010 London Olympics, has hired JPMorgan and Citigroup as its corporate brokers to replace the two banks who advised it on a failed takeover.

Deutsche Bank and Hoare Govett, the historic broker recently sold by Royal Bank of Scotland to U.S. investment bank Jefferies, were G4S’s previous brokers.

The corporate broker role -- a British system whereby banks or brokerages are retained to act as a link between a company and its investors -- can often lead to lucrative business, such as merger and acquisition advisory mandates.

Along with Greenhill, Deutsche and Hoare Govett advised G4S on its planned 5.2 billion pounds ($8.3 billion) acquisition of Denmark’s ISS last year, which was scuppered after a backlash from shareholders.

G4S on Thursday also named Barclays Capital, the investment banking arm of Barclays, as its financial advisor, a role shared with JPMorgan.

The change in brokerships had been expected even before Jefferies’ purchase of Hoare Govett for a nominal amount last month. But it shrinks Hoare Govett’s list of blue chip clients -- it recently lost pharmaceuticals group GlaxoSmithKline -- and rivals are circling its clients in the hope they may be reviewing brokership arrangements. ($1 = 0.6260 British pounds) (Reporting by Sarah White; Editing by David Holmes)

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