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
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
Under the merger deal, Schroders chairman Sir Winfried Bischoff will
become chairman of the European division of Salomon’s US parent
- 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.