The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

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.

Bankers blame the messy execution of a number of blocks, especially earlier in the year, on the practice of selling large blocks to banks in competitive auctions. But it is really bankers' over-aggressive bids for blocks that have led to their poor pricing, not the practice of selling blocks by auctions per se.

Vendors favour auctions because they give them a high and often guaranteed price. It is also easy for them to argue that they got the best price because they invited the world's biggest investment banks to bid for the shares and sold them on to the highest bidder.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree