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Follow on Google News | Lawyers Warn Banks To Avoid Large Buy-out DealsLondon, Friday, February 15, 2008 -- ARANCA NEWSTRACK – (aranca)
By: Aranca Lawyers are advising the banks to avoid large transactions on the grounds that it is cheaper to avoid the deals rather than risk additional losses on their funding commitments. Should the banks act on the lawyers counsel, it could increase the likelihood that more high-profile private equity deals could be stymied, the Financial Times reports. It has been argued by the lawyers that because of the current state of the market the break up charges that banks would have to pay would outweigh the writedowns they would have to make on their loans. This is contravention to conventional wisdom that pulling out of such deals tarnishes banks' reputations. An unnamed source told the Financial Times: "It is the tipping point argument. The banks have so many issues with their balance sheets that they are considering a new policy." # # # About Aranca Aranca is an end-to-end provider of on-demand, investment, business and economic research, and valuation services to global clients. Our unique blend of market knowledge,flexible servicing models, quality assurance standards and offshore operations reward our clients with high quality, scalable, cost-effective research and valuation services. With client facing offices in San Francisco, New York, London, Brussels and Mumbai. syndicate@aranca.com Website: www.aranca.com End
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