The Government is poised to begin talks with the three investment banks awarded the right to advise on the sale of its $178 billion share portfolio.
Preliminary discussions had been held with representatives of ING Barings, Jardine Fleming and Goldman Sachs, which had been awarded the mandate for the disposal, a senior government official said last night.
Exchange Fund Investment Limited, the government arm set up to manage the portfolio, will now begin detailed talks on the proposals suggested by the firms during their attempts to win the contract.
At least 10 firms were thought to have been on the shortlist, including Credit Suisse First Boston, Merrill Lynch, Morgan Stanley and ABN Amro. While it had been widely predicted Goldman Sachs and Jardine Fleming would win, ING Barings was a surprise.
Estimates of the fees involved for the banks vary widely, but could reach the $4 billion mark.
A senior employee, told last night of his firm's participation, described it as a once-in-a-decade opportunity.
'You just don't get opportunities like this every day and this will be a complex, and challenging opportunity for all three firms,' he said.
