Sanofi, Genzyme banks may split $125m in M&A fees

Wed Feb 16, 2011 9:43am EST

* Four banks may split most of estimated $100-$125m M&A fees

* Nine-month saga ends in second-biggest biotech takeover

By Quentin Webb and Jessica Hall

LONDON/PHILADELPHIA, Feb 16 (Reuters) - Banks including Goldman Sachs and JPMorgan stand to earn as much as $125 million in fees after Sanofi-Aventis SA (SASY.PA) finally clinched a $20.1 billion-plus deal to buy Genzyme Corp GENZ.O. [ID:nLDE71F046]

Sanofi's banks may earn $50 to $60 million in fees for their mergers and acquisitions (M&A) advice, while Genzyme's financial advisers could make $53 to $65 million, according to estimates from Freeman & Co, a consultancy.

Sanofi's lead financial advisers were Evercore Partners (EVR.N) and JPMorgan (JPM.N), while Credit Suisse (CSGN.VX) and Goldman Sachs (GS.N) advised Genzyme, Sanofi said on Wednesday.

BNP Paribas (BNPP.PA) and Societe Generale (SOGN.PA), who alongside JPMorgan arranged $15 billion of loans for Sanofi, will reap separate lending fees but may also receive M&A fees.

So too could Morgan Stanley (MS.N). In November sources familiar with the matter said Sanofi had hired the Wall Street bank as an additional adviser. [ID:nN15264829]

The law firm Weil, Gotshal & Manges LLP advised Sanofi, while Ropes & Gray LLP advised Genzyme, and Wachtell, Lipton, Rosen & Katz advised Genzyme's independent directors. Companies only infrequently disclose M&A fees, or even all-in merger costs -- a much bigger figure that also includes fees paid to lenders, lawyers, accountants, printers and others.

However, U.S. Securities and Exchange Commission (SEC) filings provide some recent examples in healthcare.

Last year Millipore, a U.S. maker of biotechnology tools, agreed to pay up to $33 million to Goldman Sachs for advice on its $6 billion sale to Germany's Merck KGaA (MRCG.DE), while JPMorgan earned $21.7 million advising Biovail Corp of Canada on its tie-up with Valeant Pharmaceuticals International (VRX.TO). (Reporting by Quentin Webb in London and Jessica Hall in Philadelphia; editing by David Cowell)

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