Bulge-bracket investment banks are battling for a share of the UK corporate broking market for one reason – to get close to the small number of blue-chip corporates that drive mergers and acquisitions activity and UK equity issuance.

Last week, Cazenove finally acknowledged it had received approaches from buyers, with Lehman Brothers thought to be leading the pack. Meanwhile, market rumour has linked JP Morgan with Hoare Govett, the broking business of ABN Amro, although both have denied any contact.