Trafalgar switches brokers

TRAFALGAR HOUSE, the Ritz Hotel to housebuilding conglomerate, yesterday replaced Barclays de Zoete Wedd as its joint broker because of a conflict of interest following its takeover of Davy, the construction group, writes Heather Connon.

BZW is broker and corporate finance adviser to Midland & Scottish Resources, which is in dispute with Trafalgar about payment for the Emerald oil platform which Davy was constructing.

Payment of the pounds 54m second instalment of consideration to Davy shareholders is conditional upon MSR drawing down a letter of credit to pay for the rig. The deadline for that expires at the end of the month, but there is little propsect of MSR satisfying the conditions. It is, however, chartering the rig from Trafalgar.

Trafalgar has appointed UBS Phillips & Drew as joint broker with Cazenove & Co.