Lehman advisers set to be hit in bank's collapse
Regular advisers to Lehman Brothers could lose millions of pounds in legal fees following the shock demise of one of Wall Street's leading investment houses. City firms including Ashurst, Allen & Overy (A&O), Linklaters, Freshfields Bruckhaus Deringer and Lovells all sit on Lehman's UK legal panel, with the bank estimated to spend some £40m in legal fees globally each year.Data from Mergermarket shows that Ashurst, Linklaters and Herbert Smith took the lion's share of Lehman's work on European M&A deals over the last year, with roles on deals including Carlsberg's takeover of Scottish & Newcastle and Alcoa's acquisition of a stake in Rio Tinto.Similarly, in the US, Simpson Thacher & Bartlett and the already troubled Cadwalader Wickersham & Taft have close links to the 158-year old investment house.While several firms have since won lucrative roles relating to the bankruptcy, it leaves others exposed at a time of already decreased activity in both the finance and corporate markets. In addition to a lack of future mandates from the bank, the firms look set to lose fees for work they are already owed.
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