Exclusive-Wells Fargo hires Paterson from Citi for activism defense

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By Svea Herbst-Bayliss

NEW YORK (Reuters) -Wells Fargo has hired a senior banker from Citigroup to lead its activism defense practice, as corporations scramble to build out business units to help clients facing pressure from activist investors.

The bank confirmed to Reuters that it is bringing on Muir Paterson as a managing director and head of shareholder advisory and defense from Citigroup where he was a managing director and global head of shareholder advisory and defense. He will report to Jeff Hogan, Wells’ head of global mergers and acquisitions.

The hire dovetails with Wells’ goal of building out its investment banking division.

Wells Fargo declined to provide additional comment.

Wells has been looking for a senior banker to head its activism defense practice for months, sources contacted about the role said. The move also comes just weeks after Jefferies hired veteran Lazard banker Rich Thomas as its new global head of activism defense and JPMorgan Chase in April hired two veteran bankers, Duncan Herrington and Lyndon Park, in its global shareholder engagement and M&A capital markets group.

Paterson will join Wells after a period of garden leave and work in New York. Before joining Citi in 2017, Paterson worked for Goldman Sachs, Wellington Management and proxy advisory firm Institutional Shareholder Services.

At Citi he helped advise Mercury Systems when Jana Partners and Starboard Value pushed for changes and Berry Global Group in its engagement with Ancora Holdings.

Wells has been busy in building out its M&A business and recently hired two senior bankers from Goldman Sachs, Chris DiOrio and Kieran Ryan, to head industrials M&A and head sponsors M&A respectively.

(Reporting by Svea Herbst-Bayliss; Editing by Franklin Paul and Lisa Shumaker)