THE defection of ABN Amro Hoare Govett’s top corporate brokers cost the bank another top client yesterday when WH Smith dumped the Dutch bank for Merrill Lynch.

ABN Amro was first told in spring that its role as corporate broker was to be placed under review. It is understood that the process was still in motion when Nigel Mills, the Dutch bank’s top broker, and six of his colleagues jumped ship to Citigroup in May.

A WH Smith spokesman said that the retailer had chosen Merrill Lynch because of the size of the Wall Street giant’s corporate broking team, its international reach and its understanding of WH Smith’s business strategy. It is understood that JP Morgan Cazenove, which worked alongside ABN Amro advising the retailer, was not required to repitch for the business.

The move marks the third big client loss for ABN Amro since Citigroup launched a raid on its staff. Cadbury Schweppes dropped the broker in favour of Goldman Sachs and UBS late last month.

A source familiar with the WH Smith move said that the initial intention had been to appoint an American bank with contacts in the hedge fund industry to work alongside ABN Amro. However, after the departure of Mr Mills, who worked on the Cadbury account, the decision was made to drop the bank altogether.

Since May, Goldman Sachs and UBS have also poached Centrica, the utility business, from the Dutch bank.

ABN Amro declined to comment on the move by WH Smith. However, a spokesman said that the bank was continuing to win mandates, pointing to its success in scooping five new FTSE 250 clients this year.

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