Wall Street May Get $280 Million in Raytheon, Tableau Deal Fees
(Bloomberg) -- Within 24 hours, Wall Street bankers were given two reasons to stop lamenting about a lack of big deals.
Banks may reap as much as $280 million in fees from two jumbo mergers announced this week, according to estimates from consulting firm Freeman & Co. Salesforce.com Inc. agreed to buy Tableau Software Inc. for $15.3 billion Monday in its largest-ever deal a day after United Technologies Inc. agreed to buy Raytheon Co. in an all-stock deal, one of the biggest defense industry deals on record.
Raytheon’s advisers may split $70 million to $90 million in fees, according to Freeman. Citigroup Inc. was its financial adviser while Royal Bank of Canada’s RBC Capital Markets provided a fairness opinion. Shearman & Sterling LLP provided legal advice.
United Technologies’s advisers -- Morgan Stanley, Evercore Inc. and Goldman Sachs Group Inc. -- could be poised to receive part of an up to $80 million in estimated fees. Wachtell, Lipton, Rosen & Katz was the industrial company’s lawyer.
Bank of America Corp. could get $30 million to $40 million as the sole financial adviser to Salesforce. Goldman Sachs, which advised on both transactions, could get up to $70 million as Tableau’s exclusive financial adviser.
The deals bolster 2019’s spotty market for mergers and acquisitions, which have been depressed amid concerns about trade wars and a slowdown in the global economy. Most major banks said fees tied to M&A had slumped during the first quarter compared to the prior three months while some including Goldman Sachs expected a weaker backlog.
Announced deals in North America are now up more than 7 percent as of Monday compared to a year earlier, to $866 billion, according to data compiled by Bloomberg. M&A in North America had been down about 6 percent before the weekend.
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