Holding in Company

Merchants Trust PLC
18 October 2000

                                 SCHEDULE 10

                  NOTIFICATION OF MAJOR INTERESTS IN SHARES

1) Name of company

The Merchants Trust PLC

2) Name of shareholder having a major interest

Zurich Financial Services Group and its subsidiaries (including Eagle Star
Holdings PLC).

3) Please state whether notification indicates that it is in respect of
holding of the shareholder named in 2 above or in respect of a
non-beneficial interest or in the case of an individual holder if it is a
holding of that person's spouse or children under the age of 18

As in 2 above.

4) Name of the registered holder(s) and, if more than one holder, the
number of shares held by each of them

(See additional information below).

5) Number of shares/amount of stock acquired

(See additional information below).

6) Percentage of issued class

-

7) Number of shares/amount of stock disposed

-

8) Percentage of issued class

-

9) Class of security

3.65% Preference Shares of £1.

10) Date of transaction

(See additional information below).

11) Date company informed

18th October 2000

12) Total holding following this notification

90,000


13) Total percentage holding of issued class following this notification

7.6% of issued class of capital

14) Any additional information

The Company has been advised that, following a corporate re-organisation
within the Zurich Financial Services Group, Zurich Financial Services, the
Group's new sole ultimate holding company incorporated in Switzerland, has
acquired a disclosable interest in The Merchants Trust PLC and Zurich Allied
AG has ceased to have a notifiable interest. This announcement does not arise
from an acquisition or disposal of shares.

This announcement also serves to give notice that Eagle Star Holdings PLC,
Eagle Star Life Assurance Company, Scudder Threadneedle Investments Ltd,
Scudder Investments Holdings Ltd, Allied Zurich Holdings Ltd, Zurich Group
Holding and those companies' intermediate holding company, Allied Zurich plc
are deemed to have a notifiable interest in the above 90,000 3.65% Preference
Shares.

15) Name of contact and telephone number for queries

Kirsten Salt 020 7475 5808

16) Name and signature of authorised company official responsible for
making this notification

Kirsten Salt 020 7475 5808


Date of notification 18th October 2000