LONDON Jan 14 Bankers advising parcel delivery
companies UPS and TNT Express are set to miss
out on $55 million in fees after UPS withdrew its
5.2-billion-euro bid ($6.9 billion) for TNT due to opposition
from antitrust regulators.
U.S. group UPS's advisers Morgan Stanley, Bank of
America and UBS would have shared around $25
to $30 million, according to Freeman Consulting.
TNT's bankers, Goldman Sachs and Lazard, and Deutsche Bank,
which helped the Dutch group's largest shareholder PostNL, would
have split the remaining $20-$25 million, the data consultant
The payout would have been around 10-15 percent higher than
the average for deals of a similar size because UPS had made an
unsolicited approach to TNT Express, Freeman estimates.
Morgan Stanley, acting as principal financial adviser to UPS
was likely to earn the lion's share of the UPS fee pot, up to
around 50 percent, with Bank of America and UBS sharing about 25
Of the remaining $20-25 million of fees, Goldman Sachs could
have earned around 60 percent. Lazard, which advised TNT's
advisory board was set to receive 2.5 million euros ($3.3
million), a source familiar with the matter told Reuters.
All of the advisers contacted by Reuters declined to
UPS dropped its bid for TNT Express after the European
Commission, the antitrust watchdog for the bloc of 27 countries,
informed the two companies it was working on a decision to
prohibit the proposed acquisition.
The value of mergers and acquisitions globally edged
slightly higher last year, rising 2 percent to $2.6 trillion
according to Thomson Reuters/Freeman Consulting data.
But a reduction in the number of large deals translated into
a drop in fees, down 13 percent to $24.7 billion - bad news for
investment banks facing higher costs from tougher capital rules
and regulatory probes.
($1 = 0.7493 euros)
(Reporting by Sophie Sassard and Anjuli Davies; Editing by Mark