I am not referring to the billions that Baugur lost in relation to Arcadia, but all its other conquests in all areas of Icelandic society, businesses and institutions."One well-connected Icelandic source dismissed Ms Benediktsdottir's attack on the grounds that she is "very bitter and angry to the family".Bladid, a new title in Iceland, was the only newspaper to consent to run her piece. The source added: "She used to run health clubs in Iceland but went bankrupt. She has since been putting out allegations on people in Icelandic financial life, most often with very little substance."In her defence, Ms Benediktsdottir said that she had a "feminist approach to business".A spokesman for Baugur said: "It wouldn't be appropriate to comment on these statements she Ms Benediktsdottir has written.". In light of the power and extent of Baugur, it would be dangerous for the entire Icelandic nation not to seek to remedy the damage that has already been done. In a letter to the national commissioner of the Icelandic Police on 30 June - the day before he was formally charged - Jon Asgeir attacked Ms Benediktsdottir for her "alliance" with Jon Gerald Sullenberger, the group's former US-based supplier who instigated the initial raid in August 2002.For her part, Ms Benediktsdottir said she felt compelled to clear her name.

The inquiry into him and other associates is threatening to derail a bid for Somerfield because Baugur is an important part of the bidding consortium. Further light was shed on the nature of the investigation into Jon Asgeir Johannesson, Baugur's chief executive facing fraud charges, by a prosecution witness yesterday. Jonina Benediktsdottir, the ex-girlfriend of Jon Asgeir's father, Johannes, has revealed the scale of the personal animosities that have dogged the three-year inquiry into the Johannessons in a critical article published in the Icelandic daily newspaper, Bladid. Jon Asgeir, who has been charged with embezzlement, has maintained throughout that the investigation into him has been politically motivated. Its partner JP Morgan backed Mr Glazer's bid for Manchester United by lending him £300m.Centrica said there was no link between the decision to change brokers and the Manchester United situation. It said it started reviewing its broking relationships last summer, before the Glazer bid.Cazenove and Hoare Govett face other possible client losses, as the retailer WH Smith has also put their joint role of corporate broker out to tender. The insurer Prudential is also believed to be reviewing its broking relationships Its current brokers are JP Morgan Cazenove and UBS.. Many commentators expected Hoare Govett to lose some clients following the staff defections.There had also been speculation that Centrica would change its brokers in the aftermath of the £800m takeover of Manchester United by the US tycoon Malcolm Glazer.Centrica's chief executive Roy Gardner, who was chairman of the football club, was upset by Cazenove's role in the takeover battle.

The drinks group Cadbury Schweppes replaced Hoare Govett with Goldman Sachs and UBS last month.Hoare Govett has recently suffered the loss of seven senior staff, including its chief executive Nigel Mills, to Citigroup, which tried to poach up to 20 brokers. Centrica yesterday dropped JP Morgan Cazenove and ABN Amro's Hoare Govett as corporate brokers. The gas and electricity utility said it replaced them with Goldman Sachs and UBS. Cazenove - Britain's biggest broker and stockbroker to the Queen - is already reeling from a spate of client defections, including ITV, HBOS and Diageo. Centrica marks Cazenove's fifth FTSE 100 client loss since it gave up its independence last November, when it formed a joint venture with the US investment bank JP Morgan Chase. For Hoare Govett, the troubled UK broking arm of the Dutch bank ABN Amro, Centrica is the second FTSE 100 company it has lost in the past month.