Bumper City bonuses expected from takeover frenzy after pound hits record low

The hedge fund tycoon Crispin Odey said the pound’s fall ‘obviously’ increased the likelihood of takeovers. Photograph: Carl Court/Getty Images

Bankers could rake in bumper bonuses from a “wave of bids” by overseas buyers for UK businesses made temptingly cheaper as a result of the plunge in the pound against the dollar. A fresh frenzy of merger and acquisition activity would mean a ramp-up in payouts for City dealmakers.

Sterling fell by nearly 5% at one point on Monday to $1.0327, its lowest since Britain went decimal in 1971. The currency has fallen by more than a fifth against the dollar this year.