By PAUL PANCKHURST AND PAM GRAHAM
Investment banking and retail broking staff at one of New Zealand's biggest sharebroking firms, JBWere, are nervously awaiting the impact of a merger with the Wall Street colossus Goldman Sachs.
JBWere, a 164-year-old partnership with headquarters in Melbourne, is connected in New Zealand with some
of the biggest sharemarket plays and corporate deals.
A source close to the firm yesterday said the merger was going ahead and staff were nervous about job cuts.
Goldman Sachs is expected to buy between 40 per cent to 45 per cent stake of JBWere and an announcement is due by Friday, according to the Australian Financial Review.
JBWere is expected to maintain control of the Australian and New Zealand businesses.
The ramifications for the New Zealand business are not yet clear, though job losses are expected to be minimal.
Goldman Sachs concentrates on institutional business and has little interest in New Zealand. A source said JBWere had about 20 per cent of the New Zealand sharebroking market. In Australia, the alliance is being seen as a marriage of convenience. Goldman Sachs has failed to crack that market and JBWere has senior partners due to retire.
Both firms have long histories of pioneering in finance but they come from very different establishments.
Goldman Sachs is fee and deal driven with a "we're the best" attitude.
"At JBWere you have guys that have been there for 25 years with good Australian relationships they milk to keep their desks and a good lifestyle. That will all go," said one Australian banker.
Rivals said it would not necessarily shake up the market because Goldman Sachs had few staff in this region. It is biggest in mergers and acquisitions advice where JBWere is weakest.
Goldman Sachs has only a small equities trading business and invited Macquarie Bank to help with the forthcoming public share sale of Royal & SunAlliance's Australia and New Zealand insurance businesses, renamed Promina.
Global brokers have expanded and contracted in the Australian and New Zealand market depending on strategies at head office.
