Nalco's sobering fee

JPMorgan joins ABN AMRO as the Indian government primes its first privatization in ADR format.

The US investment bank was recently selected as a second joint global advisor for the Indian government's proposed divestment of a 59% stake in National Aluminium Company Nalco, the world's lowest cost producer of alumina, the raw material of aluminium. On listing, the company will become the third Indian public sector unit PSU to be listed on the New York Stock Exchange following MTNL and VSNL, which have both converted their GDR floats into ADR programmes.

However, for Asia's investment banking community, the stand-out aspect of the transaction is the exceptionally miserly 1.96% fee the two will share for the completion of what is expected to be a roughly $250 million ADR issue....

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