Marconi Spends $200M in Banking and Legal Fees

Financial News, August 20, 2001 | Go to article overview

Marconi Spends $200M in Banking and Legal Fees


Byline: James Rossiter and William Hutchings

Marconi, the UK telecom equipment group, has spent an estimated $200m (e226m) in investment banking and legal fees since its transformation from the old General Electric Company conglomerate in 1996, according to analysis by Financial News.

The fees, which are a conservative estimate, were paid to transform the company into a telecoms equipment company which has seen its share price fall more than 95% in less than a year.

Since October 1996, when Lord Simpson took over from Lord Weinstock as chief executive, Marconi has leant on its bankers for advice on over $23bn of M&A deals and equity sales. These include the $11bn sale of its aerospace and defence business and the $3.5bn acquisition of FORE Systems, a US technology company, in 1999.

Morgan Stanley, UBS Warburg and JP Morgan have earned the lion's share of these fees along with Credit Suisse First Boston, Marconi's broker. The banks advised on 28 M&A deals in this period, with a total deal value of over $25bn, according to data from Dealogic.

Fees have been calculated on the assumption that banks charged an average rate of 0.75% for the majority of those transactions worth a few hundred million dollars. Five larger deals will have levied a charge rate of 0.5% or less.

Marconi paid over $30m in fees on equity sales, including the sale of its stake in Alstom. Marconi has spent almost e25m on debt financing fees in the past 18 months, a large chunk of which has gone to Morgan Stanley.

The company will have spent atleast a further $50m in legal fees over the past five years, according to sources close to Marconi. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Marconi Spends $200M in Banking and Legal Fees
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.