Schroders deal threatens FD and GCI work

The relationship between global finance house Schroders and its agencies Financial Dynamics and GCI Focus is under threat, following the announcement of a deal to sell its investment banking arm to Salomon Smith Barney (SSB).

The relationship between global finance house Schroders and its

agencies Financial Dynamics and GCI Focus is under threat, following the

announcement of a deal to sell its investment banking arm to Salomon

Smith Barney (SSB).



FD currently handles financial PR for both Schroders plc and the

subsidiary SSB is buying for almost pounds 1.4 billion. Schroders’ asset

management arm currently uses GCI Focus. Brian Wood, head of PR at

Schroders, confirmed that FD and GCI would be retained until regulatory

and financial hurdles connected with the merger had been cleared, but

that no longer-term decision had been taken.



An FD source pointed out that, in presenting the bank’s results over

many years, FD had also acted for the fund management business. ’There

is a continuing role for FD at plc level after the merger,’ the source

said.



But a senior Schroders source told PR Week it would ’not make sense to

use two such agencies for a single product company. If we decide to go

with only one agency, both will get a crack at it.’



SSB’s financial PR for the project is being handled by the Brunswick

Group.



Under the merger deal, Schroders chairman Sir Winfried Bischoff will

become chairman of the European division of Salomon’s US parent

Citigroup.



- GCI Focus has hired Emily Morris as joint head of its professional and

financial services division. Morris was formerly head of Consolidated

Communications’ financial practice.



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