Goldman Poised To Retake Lead In Global M&A Advisory
18 December 2010 - 4:03AM
Dow Jones News
Goldman Sachs Group Inc. (GS) is poised to retake the lead among
advisers on global merger and acquisition transactions, but a surge
from big European banks knocked Citigroup Inc. (C) out of its
fourth-place spot.
Preliminary data from Thomson Reuters puts Goldman in first
place among global merger advisers this year ahead of Morgan
Stanley (MS), which ranked first in 2009, and JPMorgan Chase &
Co. (JPM), which held onto third place. Goldman also tops the
rankings of advisers in U.S. merger transactions this year. Morgan
Stanley ranks first among European deal advisers, followed by
Goldman and J.P. Morgan.
Deal rankings are closely watched barometers of the revenue
pipeline for Wall Street banks, in addition to providing bragging
rights for banks at the top. The Thomson Reuters data are
preliminary, with two weeks to go in the year, but dealmaking tends
to wind down as the calendar nears year-end.
Credit Suisse Group (CS) climbed to fourth from sixth in global
advisory so far this year; Deutsche Bank AG (DB) rose to fifth from
seventh; and UBS AG (UBS) climbed to sixth from eighth last year.
Barclays PLC (BARC.LN) and Lazard Ltd. (LAZ) held steady at ninth
and 10th place, respectively.
In the U.S., Goldman, Morgan Stanley and J.P. Morgan held the
same top three rankings, in order, compared with last year. Credit
Suisse jumped to fourth from ninth and Deutsche Bank climbed to
seventh from 13th place last year.
Citigroup was the biggest loser in global and U.S. merger
advisory, falling to eighth and 10th, respectively.
The rankings equally weight advisers even if they are on the
same deal and play less critical roles. One of the trends in deals,
as well as in stock and bond underwriting, is to see several
advisers piling into the same assignments.
For example, the second-largest announced transaction this year,
the $25 billion takeover of GDF Suez S.A.'s (GSZ.FR) international
assets by International Power PLC (IPR.LN), included 10 advisers,
seven of them for the acquirer, for which Goldman is listed as the
lead, and three for the target, for which Nomura Holdings Inc.
(NMR) is named first.
Announced mergers totaled $2.2 trillion so far this year, up
from $1.9 trillion last year and the most active year since the
2008 credit crisis put a chill on dealmaking. However, for the
fourth quarter volumes were down 17% to $180 billion.
On Friday, Bank of Montreal (BMO, BMO.T) announced plans to buy
Marshall & Ilsley Corp. (MI) for $4.1 billion in stock. Bank of
Montreal advised itself along with J.P. Morgan. M&I was advised
by Bank of America Merrill Lynch, which ranked fifth globally so
far this year and seventh in U.S. deals, according to Thomson
Reuters.
Private equity-backed deals are more than double the volume of
last year as sponsors return to dealmaking after a two-year lull.
There were 211 financial sponsor deals so far this year, up from
121 last year, though still well off the 2007 peak of 801
deals.
-By Liz Moyer, Dow Jones Newswires; 212-416-2512;
liz.moyer@dowjones.com
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