Deal of the year announced
(19 August 2010 – USA) Banks, law firms and public relation firms have all lined up to advise on the biggest announced transaction of 2010, after sluggish year for mergers and acquisitions activity.
BHP Billiton has made an unsolicited offer for Canada’s Potash Corp of Saskatchewan of US$38.6 billion (A$42.6 billion), with a possible US$190 million in advisory fees, according to estimates from Thomson Reuters/Freeman Consulting, up for grabs.
Also according the Thomson Reuters estimate banks will receive around 0.5 - 0.8 percent for loans and a similar rate for underwriting bonds.
This equates roughly to the banks receiving US$50 million to US$80 million for every US$10 billion financed.
It has been a rough year for M&A teams across America with deal activity only totalling US$488.6 billion for the year-to-date, compared to US$492.3 billion for the same period last year, according to deal logic.
On BHP Billiton’s team is JPMorgan and TD Financial Group, and law firm Cleary Gottlieb Steen & Hamilton LLP.
The advisers for Potash include Goldman Sachs, Bank of America-Merrill Lynch and Canada's RBC Capital Markets.
The US law firm Jones Day and Canada-based Stikeman Elliott LLP will be providing legal advice.
Also according the Thomson Reuters estimate banks will receive around 0.5 - 0.8 percent for loans and a similar rate for underwriting bonds.
This equates roughly to the banks receiving US$50 million to US$80 million for every US$10 billion financed.
It has been a rough year for M&A teams across America with deal activity only totalling US$488.6 billion for the year-to-date, compared to US$492.3 billion for the same period last year, according to deal logic.
On BHP Billiton’s team is JPMorgan and TD Financial Group, and law firm Cleary Gottlieb Steen & Hamilton LLP.
The advisers for Potash include Goldman Sachs, Bank of America-Merrill Lynch and Canada's RBC Capital Markets.
The US law firm Jones Day and Canada-based Stikeman Elliott LLP will be providing legal advice.
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