Merrill Lynch was last week fighting hard to hold on to one of its biggest clients, Diageo, the UK drinks group, after the departure of seven brokers in the past two months.

Senior corporate broking sources at Diageo said the company had served notice on Merrill Lynch, paving the way for rivals to pitch for the business. However, other sources at Diageo and Merrill Lynch denied that the bank had been served notice, while admitting that the brokership was at risk.