The windfall is unusually high even by the lucrative standards of mergers and acquisitions fees. While investment banks usually earn around 1 per cent of the value of a deal, Rothschild is in line for a much higher cut.

Final bids are due in for Westinghouse by 19th December, with potential partners set to offer some $2.6bn (£1.5bn) for the Pittsburgh-based company which was bought by BNFL in 1999.

Rothschild's payment has shocked BNFL insiders in the finance section who have recently learned of the proposals, because morale is already low at the company. Its owner, the British Government, intends to break up and sell off almost all of BNFL's businesses within the next five years, which could lead to job losses.

MPs also expressed anger at the size of Rothschild's fee because, as the company is publicly owned, taxpayers will ultimately foot the bill.

Lindsay Hoyle, a Labour member of the Trade and Industry Select Committee, said he was shocked at the size of the fee. "It's galling to see City names doing exceptionally well at the expense of the taxpayer." He also questioned the timing of selling a nuclear power station builder ahead of a review that could see new reactors commissioned in the UK.

There has been intense competition for Westinghouse, one of the world's largest providers of nuclear technology and one of the main contenders to win a multi-billion-dollar contract to build new reactors in China.

The main suitors for Westinghouse include General Electric and Shaw of the US, Japan's Toshiba, and Mitsubishi Heavy Industries and Doosan Heavy Industries, based in South Korea.

Both GE and Toshiba are expected to face open-ended reviews known as a "second-stage" referral in both Washington and Brussels, due to concerns over how much of the market they would control if they bought Westinghouse. GE and Westinghouse combined would have near-control of some markets, while Toshiba is raising concerns because it has a close business relationship with GE.

Independent on Sunday 11th December 2005