Rejected mergers cost banks dearly

Article Abstract:

The investment banking industry will stand to lose millions of dollars in closing fees should the trend of rejected mergers continue. A case in point is the collapse of the merger between Sprint Communications and WorldCom which was valued at $115 billion. WorldCom's banker Salomon Smith Barney and Sprint adviser Warburg Dillon Read will lose approximately $90 million due to the blocking of antitrust watchdogs in Brussels and Washington. The decision to intervene in the merger of the two long- distance service providers is expected to lead to more bad news for investment bankers as regulators pore over details of other pending mergers between giant companies.

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Bonuses mean investment bankers don't need Regis

Article Abstract:

The investment banking industry is expected to pay more than $15 billion in bonuses to Wall Street bankers in Dec 2000. The payoff is the biggest bonus bonanza in history since 2000 is claimed as another golden year for the sector. This despite the fact that the industry is heading towards a major slump and job cuts. Bonuses are expected to increase by 30% on the average, which translates to $88,028 for each of Wall Street's 170,400 worker.

Market information - general

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Federal-Mogul bids for car parts maker

Article Abstract:

LucasVarity Corp, an Anglo-American car parts and aerospace company, has received a preliminary offer to be acquired by Southfield, MI-based engineering firm Federal-Mogul Corp for almost $6 billion. Once the deal is realized, it would become Federal-Mogul's fourth major acquisition in 1998 as the company attempts to become one of the largest autoparts companies in the world.

Asset sales & divestitures, Motor Vehicle Parts, Motor Vehicle Parts Manufacturing, Michigan, Automotive parts, LucasVarity Corp.

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