JOSEPH PERELLA, one of the most senior bankers to quit Morgan Stanley during the turmoil at the bank this year, is to open up an investment banking boutique in the new year.

Mr Perella is joining forces with Terry Meguid, another former Morgan Stanley banker. The banking veteran, who helped to set up the M&A specialist Wasserstein Perella in the 1980s, has been talking to a number of senior bankers about joining the advisory firm.

It is believed that he has approached Simon Robertson, former president of Goldman Sachs Europe, about joining the firm. However, Mr Robertson, who is also chairman of Rolls-Royce, is setting up his own advice firm.

Mr Perella, a legendary Wall Street dealmaker, resigned as vice-chairman of Morgan Stanley in April as the firm was in turmoil about management.

The turmoil eventually ended with the appointment of John Mack to succeed Philip Purcell, who was ousted after months of campaigning by a group of former executives and shareholders.

Mr Perella walked away with a $6.4 million payoff, but he jumped back into the M&A ring, serving as an independent adviser on the $35 billion takeover of the credit-card giant MBNA by Bank of America.

The former Morgan Stanley banker could be prevented from approaching his former colleagues by his contract, although at least 25 managing directors at Morgan Stanley are set to leave anyway under management changes being instigated by Mr Mack. The new chief executive has laid out tough new earnings targets for the bank.

Before joining Morgan Stanley, Mr Perella working with Bruce Wasserstein to set up Wasserstein Perella. The firm eventually was sold to Dresdner, the Germany bank, to form Dresdner Kleinwort Wasserstein.

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