Block vendors should think carefully before deciding on deal structure

Mandated offerings, rather than auctions, offer the best chance for a successful sale

The continued strength of stockmarkets in Europe is a pretty certain guarantee that vendors with large blocks of shares to sell will be tempted to hit the market in the fourth quarter.

Governments with privatization programmes are sure to feature prominently. The value of block trades linked to privatizations in Europe has already surpassed A12 billion this year and bankers expect to see a few more multi-billion euro blocks before the end of the year.

Governments and other vendors would do well to look back on how block deals have gone so far this year and how they were done.

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