| Investment banks face fresh calls to curb their fees on big takeovers as shareholders demand the right to claw back advisory charges if a merger turns sour. The merger of mining and commodities giants Glencore and Xstrata has prompted leading institutions to press for penalties for the advising banks if it turns out to destroy value in the long term.
The merger – likely to generate £90?million of advisory charges – will create a global giant in mining and commodities trading worth about £69?billion, making it the eighth-biggest member of the FTSE 100 and the world’s fourth-biggest miner. The return of mega-deals has prompted institutional shareholders to renew calls for fees to be more tightly controlled..............................................Full Article: Source
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