Former Goldman banker turns back on UniCredit for Merrill

Dow Jones - Financial News

Jason Corcoran in Moscow

12 Aug 2008

US bank Merrill Lynch has hired a former leading Goldman Sachs banker in Russia, who was supposed to be joining UniCredit's operation in Moscow, as co-head of investment banking in Russia.

The Italian bank UniCredit, which acquired Russian brokerage Aton 18 months ago, told Financial News in June that Amiran Kanchaveli, an executive director at Goldman Sachs, was joining as co-head of investment banking.

However, Kanchaveli, who previously worked at ABN AMRO alongside the prime minister of Georgia, Vladimir Gurgenidze, changed his mind.

A source familiar with the situation said Kanchaveli had opted to join Merrill Lynch instead and had recently taken up a senior position in investment banking.

The bank is also hiring additional staff in equity sales and trading, along with fixed income, according to a Merrill Lynch insider.

On a visit to Moscow earlier this year, Merrill Lynch chief executive John Thain said the bank was going to expand rather than lay off employees in Russia.

The bank has recently been one of the strongest players in Russia's burgeoning mergers & acquisition advisory market but is looking to build brokerage capabilities as well.

Russia remains one of the most competitive markets in investment banking for talent in spite of Russian equity issuance drying up and flagging domestic markets, in the wake of allegations of price fixing at mining group Mechel and the outbreak of hostilities with Georgia in the breakaway republic of Southern Ossetia.