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The politics of picking advisers

Investment banks are jostling for position as advisers to stock exchanges as consolidation in the sector heats up

The allocation of advisory slots on big-ticket M&A deals can often be a political minefield. Investment banks will tell you they were picked because their advice is the best but there are inevitably other considerations at play.

Companies may wish to reward their corporate lending banks for being there through the hard times with a coveted slot on a deal, for example; enlisting particularly effective or aggressive banks also removes the headache of having them working for anyone else.

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