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Flurry of UK takeovers set to boost fees for investment banks
December 7, 2017 / 5:33 PM / 4 days ago

Flurry of UK takeovers set to boost fees for investment banks

LONDON (Reuters) - Investment banks could earn as much as $183 million in fees from a flurry of deal-making by British companies this week, according to estimates by Freeman Consulting Services.

FILE PHOTO: A branch of Ladbrokes is seen in central London, Britain, May 17, 2016. REUTERS/Toby Melville/File Photo

Online gambling operator GVC’s (GVC.L) possible takeover of Ladbrokes Coral (LCL.L), which may value the bookmaker at up 3.9 billion pounds ($5.2 billion) and was announced on Thursday, could generate fees of about 48 million pounds for banks working on the potential cash-and-shares deal, Freeman estimated.

Meanwhile, shopping center owner Hammerson’s (HMSO.L) 3.4 billion-pound offer for rival Intu Properties (INTUP.L), disclosed on Wednesday, is projected to earn up to 39 million pounds for the banks involved.

And Cineworld’s (CINE.L) reverse takeover of U.S. cinema chain Regal Entertainment (RGC.N) agreed on Tuesday could net 49 million pounds for advisers.

Britain has seen a rush of takeover deals this week despite, market volatility caused by stalled Brexit negotiations.

The activity brings the overall value of domestic deals between UK companies to $60.8 billion so far this year, up from $28.1 billion a year earlier, according to Thomson Reuters data.

The value of all deals involving UK companies has risen to $336.9 billion this year, compared with $329.9 billion, the data show.

These figures exclude GVC’s talks with Ladbrokes Coral, which have not yet resulted in a firm offer.

More takeovers could also be in the offing this week.

Singaporean billionaire Kwek Leng Beng has until 1700 GMT on Friday to make a firm offer to take control of FTSE 250-listed Millennium & Copthorne Hotels (MLC.L) under Takeover Panel rules.

His City Developments Limited firm, which is the majority shareholder in M&C, has proposed a deal to buy out the rest of the hotelier, valuing the company at 1.8 billion pounds.

Boutique firm Houlihan Lokey and Investec, which are advising GVC, could together earn 22 million pounds from a deal, while Ladbrokes Coral’s advisers Greenhill, another boutique, and UBS could net up to a combined 26 million, Freeman said.

Deutsche Bank, JP Morgan and Lazard, which are advising Hammerson, could share 18 million pounds, and Intu’s banks, which are Rothschild, Bank of America Merrill Lynch, and UBS, could net a combined 21 million pounds, according to Freeman.

Cineworld’s advisers, which are Barclays, HSBC and Investec, may together receive fees of 23 million pounds and Morgan Stanley, which is acting for Regal, could earn 26 million.

Reporting by Ben Martin; Editing by Mark Potter

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