What a waste! £835 million creamed off the Refinitiv and LSE deal by ‘advisors’

Refinitiv’s deal with LSE may be one in which shareholders and financial markets professionals look forward to, but what about the massive sum being bilked from both sides by lawyers and advisors? This type of conduct never gets scrutinized

Nobody likes lawyers or consultants, however when looking at today’s revelation regarding the recently confirmed impending merger between Refinitiv and the London Stock Exchange, more fuel will likely be added to that fire.

Shareholder interest may well be focused on the potential might of the merging of one of the world’s largest providers of financial markets data infrastructure and the London Stock Exchange, however that shouldn’t detract from the massive amounts being charged by hangers-on such as lawyers and external advisory firms who are set to receive a total of £835 million in combined fees when the deal goes live.

It is well known that lawyers create paperwork and obstacles in order to extract as much as possible from companies during an acquisition or merger, however this is outlandish, and there are no rules which prevent lawyers from creating drag and obstacles in order to milk their clients.

FinanceFeeds has been witness to external consultancies in the UK robbing the health service blind, to corporate lawyers creating a situation in which they live from the losses of customers when dealing with the administration of insolvent financial services firms and providing low penny-to-the-pound offers to defrauded customers when acting on their behalf in recovering funds, the lawyers often helping themselves to more than the client receives.

The predicted £835 million should alarm shareholders and directors of LSE and Refinitive that are responsible for conducting the transaction.

Firms including Goldman Sachs, Morgan Stanley, Robey Warshaw, Barclays, RBC Capital Markets and law firm Freshfields Bruckhaus Deringer will be raking in the cash after advising the LSE on the deal.

Refinitiv, which is owned by Thomson Reuters and investment giant Blackstone, will be handing out cheques to firms including Evercore, Canson Capital Partners and Jefferies.

Jefferies and Freshfields are in the same building at 100 Bishopsgate. They will no doubt be jointly celebrating.

The forthcoming merger between LSE and Refinitiv was first announced in summer 2019, but has taken months to work through as regulators comb through the details.

The LSE hopes its combination with Refinitiv, best known among City traders for its terminal screens, will make it a major player in the increasingly valuable financial data market.

Accountants at mid-tier firm BDO may have been looking at the LSE advisers’ fees with envy, as they took a double-digit hit to their pay. After the draconian lockdowns instigated by the government whose aspirations are toward total control disrupted business, their average share of profit before tax slumped 14 per cent to £518,000 for the year to June 30.

It is time that these outlandish fees which go totally unquestioned are brought under the microscope.

Read this next

Digital Assets

Societe Generale launches its own cryptocurrency, EURCV

French banking giant Societe Generale has launched its own euro-pegged stablecoin, EUR CoinVertible (EURCV). This move by France’s third-largest bank reflects the increasing trend of mainstream financial institutions embracing cryptocurrencies on a global scale.

Executive Moves

Stelios Eleftheriou leaves NAGA Group to join BVNK

BVNK, the crypto-powered payments and banking platform for businesses, has appointed FX industry veteran Stelios Eleftheriou, who has a colorful career across the gaming industry, as Business Development Director (CFD & iGaming).

Retail FX

CAPEX.com introduce ETFs on UAE, Saudi stocks

Abu Dhabi-based broker CAPEX.com has expanded its asset class offerings to include a new suite of Exchange-Traded Funds (ETFs) tailored for the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) markets.

Institutional FX

Tradeweb Markets surges past $1.80 ADV in November

Tradeweb Markets Inc. (Nasdaq: TW) has reported a total trading volume of $38.2 trillion and a record average daily volume (ADV) of $1.80 trillion for November 2023. These figures mark a 59.2% year-over-year increase.

Inside View

A Mission in Accounting

Ismael Haber, an auditor and accountant, has made it his mission to help businesses improve the quality of their financial information by eliminating fraud and error. In the next five years, the demand for these specific financial services, being external financial audits, forensic accounting, and other fraud preventive and detective services is envisaged to increase.

Institutional FX

CME Group to launch new spot FX marketplace ‘CME FX Spot+’ in 2024

US derivatives exchange, CME Group today announced plans to introduce ‘CME FX Spot+’, a novel spot foreign exchange (FX) marketplace.


FMLS:2023: Andrew Mreana provides an exclusive sneak peek into cTrader’s 2024 innovations

cTrader’s focus for the next year would be on developing new tools for Introducing Brokers (IBs) and partners, particularly those related to algorithmic (algo) trading, the company’s head of growth told FinanceFeed in an exclusive interview at the Finance Magnates London Summit 2023.

Digital Assets

Grayscale’s Ethereum ETF stalls: SEC extends review to January 2024

The United States Securities and Exchange Commission (SEC) has extended the evaluation period for Grayscale’s proposed Ethereum spot ETF.

Institutional FX

BMLL completes China equity data offering: Shanghai, Shenzhen, and Hong Kong

“Demand for China data has never been higher. This is set against a general industry trend of increased market participant sophistication, and an increasing demand for quality historic market data to understand market microstructure and venue behaviour. Market participants need to get the full picture of market quality, liquidity and order book dynamics to ultimately make better informed decisions on the markets they trade and the venues they run.”