Bharti-MTN deal off: Investment bankers lose $48 Million
By siliconindia   |   Monday, 05 October 2009, 14:48 IST   |    3 Comments
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Bharti-MTN deal off: Investment bankers lose $48 Million
Bangalore: Investment bankers have lost about $48 million after the Bharti Airtel and MTN deal failed to materialize. Investment banks generally charge 0.5-2 percent of the entire deal amount as advisory fees for the mergers and acquisitions (M&A) transaction. While the exact amount that investment bankers could have earned from Bharti-MTN deal could not be determined, it could have been up to $48 million, based on the upper limit of potential fee income from the proposed $24 billion deal, reports PTI. Bank of America, Merrill Lynch and Deutsche Bank were advising MTN, while Standard Chartered and Barclays advised Bharti Airtel. While a small portion of the fee income might have already gone to the bankers and financial advisors, they generally get the bulk of the fees only after completion of the deal. However, experts feel that lawyers and accountants, who work on fixed fees, would not suffer so much loss. "Investment banks generally charge 0.5-2 percent of the total deal amount but it would be difficult to give the exact figure that the investment banking community has lost in the Bharti-MTN deal," said Sanjeev Krishnan, Executive Director of PricewaterCoopers, a global consultancy firm.

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