Bankers involved in Bharti-MTN deal lost $48m

This is a million-dollar chance lost for investment bankers who could have earned up to $48 m in fees, if the proposed deal between Indian telecom major Bharti Airtel and South Africa's MTN had materialized. Investment banks usually charge 0.5-2 % of the entire contract amount as advisory fees for the M&A transaction. While the exact amount those investment bankers could have earned from Bharti-MTN deal could not be ascertained, it could have been up to $ 48 m, based on the upper limit of potential fee income from the proposed $ 24 b deal. Bank of America, Merrill Lynch and Deutsche Bank were advising MTN, while Standard Chartered and Barclays advised Bharti Airtel.

global market in last week May12-16

European stocks gained on better earnings from BNP Paribas SA and European Aeronautic, Defence & Space. While Asian markets climbed led by BHP Billiton, the world`s biggest miner on speculation China is scouting for acquisition in mining space probably in BHP to secure more resources to meet growing needs of the Asian`s second biggest economy.
However, shares in US fell paced by retail and financial companies after the consumer confidence slipped to the lowest in 28 years and Merrill Lynch reduced ratings of two regional banks. Overseas investors bought net of Rs 15.25 billion worth equities over the week including provisional figures.