Warburg comment, page 33
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Shares in SG Warburg and Mercury Asset Management came under further pressure yesterday, amidst signs of growing shareholder nervousness about costs incurred in the proposed takeover by Swiss Bank Corporation. Warburg closed down 13p at 760, while MAM dropped 16p to 808. Analysts said Warburg's stock is being dragged down by MAM, whose shares are being deflated by receding bid prospects for the soon-to-be independent fund management business. Dealers yesterday focused on the £100m of fees, expenses and provisions Warburg is paying as part of its takeover. Representing 5 per cent of the total £2bn deal, analysts described the cost as large, suggesting shareholders might have been able to extract more from the takeover.