CITY AT WAR
HERMES, the investment house, has held discussions with the government over the way banks are paid for managing stock market floats.
The investor wants a portion of the fees paid to banks to be withheld for several years and released only if the flotation is deemed a success.
The meetings with the department for business are the latest attempt by a key City player to revitalise London’s market for initial public offers (IPOs).
Last month, a special investigation by City A.M. revealed that key players in the IPO market were effectively at war, with boutique advisers STJ accusing book-runners of talking down the price of companies.
Unrest in the City was first exposed in a scathing letter sent by investment giant BlackRock about the state of the London IPO market.