Fees under fire as RIFI calls for tenders, more advisors

UK companies undertaking rights issues should put the primary underwriting contract out to tender, said the Institutional Investor Council on Tuesday, one of twelve recommendations the shareholder group made in a long-awaited report on rights issue fees. While the views of institutional investors will be seen as important in their own right, of even more concern to the sell-side will be the degree to which the Office of Fair Trading incorporates the findings into its own, wider, investigation into competition among ECM providers.