Bankers dismiss IIC rights issue fees report

17 Dec 2010

Shareholders will expect UK company boards to engage their bankers in a deeper negotiation over fees and services after the publication early on Tuesday morning of an Institutional Investor Council rights issue fees inquiry report, said one corporate finance lawyer. ECM bankers remain adamant that they work in a highly competitive industry and that proposals for a change in market structure make little sense.

The IIC, an industry group representing investors, said that UK rights issue fees paid to banks are too high and there is too little transparency (see box for the recommendations in full). The report will give companies more confidence — and reason — to question proposals from their ...

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