Merrill payout for Sainsbury's
12 April 2012
MERRILL Lynch Investment Management has agreed to pay a substantial sum, thought to run into tens of millions, to supermarkets giant Sainsbury's in compensation for the poor performance of its pension fund.
The settlement is embarrassing for the fund manager, which recently paid an estimated £70m to Unilever because of poorly managing its pension fund.
The Sainsbury's claim relates to 1997. MLIM has not admitted liability and both firms refused to comment on the size of the award.
'It is time to move on,' said MLIM. 'Sainsbury's is still a valued client.' Sainsbury's, which has a £257m deficit in its pension fund, said it had reached an 'amicable' agreement with MLIM.
