Goldman Sachs and Warburg Dillon Reed in line for Vodafone bonanza

Goldman Sachs and Warburg Dillon Reed, the investment banks advising Vodafone, are in line for an pounds 81m win-only fee if the phone firm's hostile bid for Mannesmann succeeds in the face of strong opposition at the target's German HQ.

That figure, which is just for advice with further fees pay-able for underwriting the pounds 77bn bid, is justified by the enormous complexity of the deal and the importance of success to Vodafone.

Goldman Sachs' position in Vodafone's team came under threat last week. Mannesmann protested that because the bank had a long-standing relationship with the German company, it might share confidential information with Vodafone. However, the case was thrown out of the High Court.