Idea-Vodafone merger: $23-bn telecom deal leaves bankers in cold

Deal is the latest example of a trend that is squeezing major international investment banks

Investment banking business in India should be enjoying bumper fees after a record year of dealmaking. It’s not, and big banks blame in-house teams of advisors that have proliferated as the country’s top family-owned conglomerates tighten their grip. 

This week’s $23-billion tie-up between Idea Cellular, controlled by the Aditya Birla Group, and the Indian business of Vodafone Group, is the latest example of a trend that is squeezing major international investment banks. 

Many are struggling in a market that has long been difficult, thanks to messy deals, paltry fees and local challengers. 

Bankers had been circling both sides of the