In October 1992, Eugene Shanks, president of Bankers Trust New York Corporation, and Brian Walsh, head of global investment bank (GIB) business unit, which is considering a proposal for a large and complex financing from the North Sea Oil Company (NSOC). Financing structure includes the use of derivative financial instruments, exposing the Bankers Trust New York Corporation substantial risk of oil prices and the credit risk. The size of $ 700 million and a long layoff and makes management of these risks on financial markets, an issue of paramount importance. The proposed transaction has been brought together by GIB, which was recently formed by the merger of Bankers Trust capital markets and corporate finance functions. If successful, the deal will be an important barometer of the value that can be created by combining the traditionally separate functions.
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by Andre F. Perold, Kuljot Singh Source: Harvard Business School 16 pages. Publication Date: October 20, 1994. Prod. #: 295010-PDF-ENG
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