Bloomberg News

Perella Loses $22.5 Million Fee After NYSE Deal Is Blocked

February 06, 2012

Feb. 3 (Bloomberg) -- Perella Weinberg Partners LP will miss out on the chance to receive a $22.5 million fee after Deutsche Boerse AG and NYSE Euronext ended their merger agreement.

The European Commission said it blocked the deal to create the world’s biggest exchange because it would have led to a “near-monopoly” for European derivatives trading. NYSE announced the deal’s termination in a statement yesterday on its website.

Perella was the sole adviser to NYSE until shortly before the exchange agreed to the combination a year ago, two people with knowledge of the situation told Bloomberg News at the time. The firm, founded in 2006 by Peter Weinberg and others, got $5 million when the agreement was announced and would have received an additional $22.5 million had the deal gone through, according to a regulatory filing.

“They’re not going to get a fee that they would’ve liked, but the visibility is probably a positive as long as they were perceived to have given good advice,” said Steve Kaplan, a professor at the University of Chicago Booth School of Business. “I don’t think this would be viewed as something that could’ve been fixed by different financial advice.”

Kara Findlay, a spokeswoman for Perella Weinberg, declined to comment. NYSE won’t have to pay a break-up fee because the merger was terminated for regulatory reasons, rather than because one of the parties exited the deal or a third party got involved.

If the deal had gone through, Deutsche Boerse adviser Deutsche Bank AG may have received 14 million euros ($18.4 million) and JPMorgan Chase & Co. $10 million, according to the filing.

Deutsche Boerse agreed to acquire its New York rival in a deal valued at $9.5 billion when it was announced last February. Deutsche Boerse, based in Frankfurt, retreated more than 20 percent through Feb. 1 since the companies said they were in merger talks.

--With assistance from Raymond Sharpley in Princeton. Editors: Elizabeth Wollman, Jeffrey Tannenbaum

To contact the reporter on this story: Will Robinson in New York at wrobinson11@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net


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