Morgan Stanley lost two of its senior bankers to competitors last week. William Vereker, European head of utilities, left to join Lehman Brothers and Peter Stott resigned to become a partner of Greenhill, the independent advisory firm.
It is understood Vereker, regarded as one of Morgan Stanley's most senior utilities bankers, will become Lehman's head of natural resources for Europe.
Stott, one of Morgan Stanley's longest-serving UK bankers, joined in 1988 and was an architect of its UK mergers and acquisitions business. He has held a variety of senior positions and served as co-head of UK investment banking from 2001 until January last year, when he was assigned a senior relationship banking role. It is thought the bank will not replace him.
Vereker most recently led the bank's team that advised International Power, the UK energy company, in its acquisition of Edison Power of the US. The transaction led to Morgan Stanley winning International Power as a corporate broking client.
Morgan Stanley has promoted Jonathan Grundy, a managing director, as Vereker's successor. Grundy, a 14-year veteran of the bank, is responsible for many of its big UK utilities clients.
Banking sources said Lehman Brothers has been looking to appoint a head of natural resources since the departure of John Walsh, the previous incumbent, a year ago.