Alibaba Group Holding Ltd (NYSE:BABA) Decides To Give Bigger Incentive Fees To Morgan Stanley (NYSE:MS) and Credit Suisse Group AG (ADR) (NYSE:CS)

Albany, New York (09/30/2014) – With the biggest ever e-commerce launch, Alibaba Group Holding Ltd (NYSE:BABA) has amazed all the critics. Now the company has gone a step further and decided to offer a bigger incentive fees to Morgan Stanley (NYSE:MS) and Credit Suisse Group AG (ADR) (NYSE:CS).

Insights of the matter:

A lot of banks helped BABA in the successful initiation of the historic IPO, although some of them got more rewards for their work than others. Two such names that topped this list are Morgan Stanley (NYSE:MS) and CS. BABA has decided reward both of these companies with a maximum incentive fees. The information was revealed by the people close to this matter who refused to disclose their identity as the matter was too private to be disclosed.

Alibaba Group Holding Ltd (NYSE:BABA) has divided the total fees pool of $250 million equally among top five banks on the IPO. As per the information, each of CS and MS received $11.3 million or 22.5% of the total amount. If the share of these banks in base-fee pool of BABA is added to the amount that have got, then the total comes up to $49 million, which is more than any other financial institution associated with this transaction. The other institutions that have received good incentive fees from BABA include names like Goldman Sachs Group Inc (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM). Both of these firms got 18% or $47 million of total fees. Other banks like Deutsche Bank AG (FRA:DBK) and City Group received comparatively lesser amount than the above-mentioned banks. The fees structure that BABA has offered to these banks is quite unusual way, which is hardly seen by companies these days. Alibaba Group Holding Ltd (NYSE:BABA) did not want to leave any stone unturned, so it appointed six players and assigned each of them individual duties to make even successful.

About the Author

Cooper is a graduated from Buffalo State College in New York with a bachelor's degree in Broadcast Journalism.

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