Merrill Lynch dropped from IPO

China Merchants Bank has dumped advisors Merrill Lynch as it prepares for a US$2 billion initial public offering this year because of a conflict of interest, the Financial Times reported. The investment bank is also involved with a competing listing for the Industrial and Commercial Bank of China. Last month Goldman Sachs was frozen out of the US$10 billion-plus IPO because of its role in the Bank of China listing. The ICBC listing is thought to be bringing in US$300 million in fees, highlighting the lucrative nature of helping the privatization drive in China. Sources close to the CMB listing plan cited by the FT said Merrill Lynch, UBS and China International Capital Corporation were selected as advisors, but now JPMorgan is in the running to step in as an underwriter.