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Dec. 19 (Bloomberg) -- AT&T Inc.’s failed $39 billion acquisition of Deutsche Telekom AG’s T-Mobile USA Inc. extends Goldman Sachs Group Inc.’s lead among takeover advisers, while seven rivals including JPMorgan Chase & Co. lose market share.
Goldman Sachs, the only bank among the top four advisers that wasn’t involved in the deal, now has 24 percent of the market with $529.5 billion in takeovers, according to data compiled by Bloomberg. JPMorgan’s share fell to 19.6 percent, followed by Morgan Stanley with 19.2 percent and Credit Suisse Group AG, with 15 percent, the data show.
The collapse of the deal also pulls global takeover volume down to about $2.19 trillion, little changed from all of 2010. AT&T’s advisers, JPMorgan, Evercore Partners Inc. and Greenhill & Co., will lose about $65 million in fees, according to estimates by New York-based researcher Freeman & Co.
Greenhill plunged to 40th place in the mergers and acquisitions rankings after AT&T said today that it was scrapping the deal. Previously, it had held 18th place for the year, data show. The firm, founded by Robert Greenhill, has slid 57 percent in New York trading this year, the worst performance in the 79-company Standard and Poor’s Midcap Financials Index.
Advisers on the Deutsche Telekom side may fare better, and could still get a percentage of the deal’s reverse $3 billion breakup fee, said Lam Nguyen, a director at Freeman. Deutsche Telekom’s bankers included Morgan Stanley, Credit Suisse, Deutsche Bank AG and Citigroup Inc.
Separately, JPMorgan may have received as much as $80 million arranging a $20 billion bridge loan for AT&T, Nguyen said.
Goldman Sachs had been an adviser to Sprint Nextel Corp., which had been in talks to buy T-Mobile USA before AT&T agreed to a takeover, people familiar with the matter said in March. The New York-based bank held the top spot in global M&A advisory every year from 2001 to 2008, data compiled by Bloomberg show.
T-Mobile is the biggest deal to be scrapped since BHP Billiton Ltd.’s $40 billion takeover bid for Potash Corp. of Saskatchewan Inc. was blocked by the Canadian government, according to the data.
Goldman Sachs may further extend its lead over rivals if regulators reject Express Scripts Inc.’s proposed purchase of Medco Health Solutions Inc. The $29.1 billion acquisition, which would result in the largest U.S. manager of pharmacy benefits for employers, insurers and union health plans, is under review by the Federal Trade Commission, and states have opened inquiries into the sale out of concern that the combined company will command too much market power.
St. Louis-based Express Scripts has plunged 18 percent since July 20, the day before the deal was announced. Medco, based in Franklin Lakes, New Jersey, has dropped 2.5 percent.
--With assistance from Michael Moore in New York. Editors: Jennifer Sondag, Elizabeth Wollman
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