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M&A fees of $100m hang in the balance as Pru deal teeters

Total fee pot of £850m for advisory and sub underwriting at risk as shareholder pressure mounts for insurer to abandon its bid for AIA

Mergers and acquisitions advisers on Prudential’s proposed acquisition of AIA stand to lose out on more than $100m (€80.6m) in potential success fees if Prudential is forced to withdraw the $35.5bn transaction amid rising shareholder unrest.

Prudential advisers Credit Suisse, JP Morgan Cazenove, Ondra Partners and Lazard would share $59.8m in M&A fees if the deal completes, according to Thomson Reuters / Freeman and & Co estimates. Of this some 90% - or $53.8m - would come in the form of success fees with the remaining $6m paid as a retainer throughout the life-span of the deal.

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