BARCLAYS Capital’s investment banking ambitions were given a further boost yesterday after being appointed as joint financial adviser to the FTSE 100 security group G4S.
The news comes just hours after the group poached Mark Astaire, the former head of corporate broking at Bank of America Merrill Lynch.
Although G4S will not count as a broking win for BarCap it is the start of another potentially strong advisory relationship.
In other changes G4S has appointed JP Morgan Cazenove as joint broker and joint financial adviser and Citigroup as joint broker. The group had been widely expected to change its advisers, who were Deutsche Bank and Hoare Govett, following its aborted takeover of ISS last year.
The intended takeover had to be called off after a revolt by investors, causing embarrassment and disappointment to the advisers.
Barclays chief executive Bob Diamond has signalled that he wants the bank to challenge for a place in the top three in investment banking but the strategy does not come without costs.
Investment bank revenues have recently been lower than hoped for.