LONDON’S BUSINESS NEWSPAPER
THE NOTEBOOK VICTORIA SCHOLAR ON BIG TECH, STRIKES AND GLOBAL TRENDSPOTTING P8 MONDAY 6 FEBRUARY 2023
ISSUE 3,928
RECORD BREAKER KANE’S 267TH GOAL DENTS MAN CITY’S HOPES P20
CITYAM.COM
FREE ARM WRESTLE
FCA told not to bend the rules for Arm LOUIS GOSS
THE BIG FOUR WANT MORE
FIRMS LOOK TO SCOOP UP LAID-OFF BANKERS TO BEEF UP M&A TEAMS LOUIS GOSS THE BIG FOUR accounting firms – Deloitte, EY, PwC, and KPMG – are seeking to hire laid-off bankers to bolster their M&A advisory arms in the City. Global banks including Goldman Sachs and Credit Suisse cut hundreds of London jobs in January in the biggest
round of layoffs since the financial crisis. But the Big Four’s M&A deals advisory units have continued to boom in the slump due to a push for consolidation in the mid-market in which the top accounting firms work. Fenton Burgin, the head of Deloitte’s M&A advisory unit, said the firm is “actively hiring”. He noted “some of our
new joiners have been former investment bankers pivoting into the mid-market M&A space”. PwC’s deals leader Lucy Stapleton said the accounting giant’s M&A business “is growing, in spite of the downturn in the volume of deals being done”. Asked whether PwC is seeking to hire laid-off bankers, Stapleton said “we’re
always looking to bring in brilliant talent”. “If there’s talent in the market, we would certainly be interested,” the PwC deals chief said. She added that PwC is “holding its nerve” by continuing to hire as she said the “mid-market is still very resilient”. £ CONTINUED ON PAGE 3
A TOP CITY lobby group has hit out at the UK’s financial watchdog over claims it is planning to bend its own rules to persuade microchip designer Arm to float on the London Stock Exchange. The Institute of Directors (IoD) warned the Financial Conduct Authority’s (FCA) offer to waive market rules “undermines the integrity of both the rules themselves and the UK’s wider governance framework”. The IoD’s comments come after The Sunday Times reported the FCA is planning to lift rules to lure the Cambridge semiconductor firm into listing in London instead of New York. The IoD said the reported plans show a “worrying willingness to rewrite the listings rulebook as a means of luring business to London”. “In the long term, good corporate governance is best served by the consistent and fair application of sensible listing rules that protect investors and other stakeholders,” Roger Barker, director of policy and corporate governance at the IoD, said. “The UK should not endanger its hard-won reputation for high governance standards by engaging in a regulatory race to the bottom.” £ CONTINUED ON PAGE 3
Avanti not ‘out of the woods yet’ as contract decision looms ILARIA GRASSO MACOLA AVANTI WEST COAST is not “out of the woods yet”, a top MP has warned, as the government decides whether to renew the operator’s contract. Rail minister Huw Merriman has said he will make a decision on Avanti’s contract soon, with the
extension set to expire in April. Merriman said it will be based “on who’s best to run” things. “I hope Avanti gets it right,” Iain Stewart, chair of the transport select committee, told City A.M. “But I don’t think they are out of the woods yet.” The troubled train operator was
recently crowned the UK’s worst operator in terms of cancellations. Avanti said previously that its performance has improved since the period the ranking was based on. Stewart said it was important to separate the cancellations Avanti was responsible for from those caused by factors beyond its control such as
adverse weather or strikes. “My view at the moment is that the jury’s still out.” He said, however, he would “not lose any sleep” if ministers said they needed more time to look at the evidence before making a decision. Avanti was approached for comment.
INSIDE MP: BRITS SHOULD DELETE TIKTOK ‘WITHOUT QUESTION’ P4 SHINING A LIGHT ON BULB’S TAKEOVER DEAL P11 LONDON MARKETS WEEK AHEAD P17 TRAVEL: ST BARTS P16