Pacific Century CyberWorks' (PCCW) recommended offer - aka scheme of arrangement - for Cable & Wireless HKT (C&W HKT) will involve fees of HK$1.012 billion ($130 million) being borne by the two parties. Not bad considering this is almost eight times the bidder's revenues last year.
Although it's hard to see how PCCW can afford the fees in this deal, one has to bear in mind that these costs are pretty small beer alongside the HK$300 billion the offer was once worth. Latest share prices suggest the offer for C&W HKT is worth a maximum HK$210 billion.
Although small in relative terms, the fees are pretty hefty in absolute terms. Why this is the case should be obvious to anyone who has sought independent advice on the deal from investment banks in recent weeks - almost everybody has got a slice of the action. Jardine Fleming, UBS Warburg, BOCI Asia, Credit Suisse First Boston and ING Barings have all had a hand in the deal, while Goldman Sachs and HSBC were advisers to failed bidder Singapore Telecommunications.
