Goldman Sachs earned 4 pennies on India deal

Discussion in 'Wall St. News' started by turkeyneck, Aug 6, 2010.

  1. Aug. 6 (Bloomberg) -- Goldman Sachs Group Inc., winning its first job managing a share sale by an Indian state-owned company, may earn next to nothing for the privilege.

    The most profitable securities firm in Wall Street history tied for the lowest bid among 17 banks vying to manage the $1.8 billion offer by Power Grid Corporation of India Ltd., three people with knowledge of the matter said. Goldman Sachs and SBI Capital Markets Ltd. said they’d do the work for a fee equal to 0.00000001 percent of the sale proceeds. That means the firms stand to reap about 2 rupees (4 cents) each on the deal.
  2. So what?

    You think companies have to make millions on every transaction?

    Sometimes you have to break even/lose in order to win in the long run.
  3. AK100


    It's called the long con.

    Work your way in, worry little about short term profits, but look to maximise them long term!
  4. Do you guys GS really would do anything for free? They make their money in trading, and even at b/e they have the ultimate inside position on the deal...