More reshuffles among brokers anticipated

Friday 2nd February 2001

By Nicholas Bryant

Local management has denied JP Morgan's retail broking and leveraged equities businesses are for sale but has hinted at "significant change" in the near future.

The firm was known as Ord Minnett until it was taken over by giant New York finance house JP Morgan late last year.

Sources close to the firm said they understood the leveraged equities business was "definitely" for sale, futures was in limbo and questions had been raised over continuing the retail operation.

Auckland director Colin Churchouse said the only alteration to the company's formation since the arrival of JP Morgan was a management buyout of the mortgage broking business.

The mortgage broking operation had been run by manager Graeme Duff and four salesmen. Mr Duff bought the operation out on Wednesday.

Mr Churchouse said to his knowledge it was business as usual for now.

"It is early days with JP Morgan but there's got to be changes, I would have thought. They're a different operation from Ord Minnett and at some stage I expect there will be a review but as yet there's no sign of anything."

Some brokers contacted were critical of the recent influx of US companies into the financial services market, saying the detached management of the operations would decimate viable businesses.

Multinational Merrill Lynch is on the verge of departing for Australia.

"I remember when Merrill Lynch was worth between $20 and $30 million and on Friday it'll be worth zero and they'll have to pay something to get rid of it," one broker said.

Another company suggested as being harmed by foreign involvement was UBS Warburg. Formerly Buddle Wilson, the company once employed about 150 people but now has 36.

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