Confidentiality and speed are key
In a block trade, a company sells a substantial amount of shares it holds in another company. Block trades are mostly used in the context of pre-agreed M&A deals and accelerated bookbuildings. They may have an impact on the market price of the shares.
BNP Paribas Fortis can underwrite (buy) a fixed number of shares at a fixed price before the deal is announced to the market.
In general there are no fees for such transactions; instead, the relevant ‘issue price’ is usually the prevailing market price less a discount. Our world-class equity research and our solid experience in executing block trades guarantees smoothness and speed of execution.