MUMBAI: Three foreign investment banks propelled themselves to the top of the league table of mergers and acquisitions in 2006, aided mainly by the Tata group’s bid to acquire Corus.
ABN Amro Bank, Deutsche Bank and Rothschild were given credit for a deal which is still in the making, though the pecking order could change if the Tatas fail in their bid to acquire the Anglo-Dutch steelmaker.
Indeed, the reality is that more and more billion dollar acquisition deals are being scooped up in the global market place by Indian companies, and big ticket investment banks with deep pockets may be expected to appear on the scene increasingly.
This year’s deal tables prepared by Bloomberg have thus raised hackles in the deal street, perhaps distracting them a bit from the robust deal pipeline they enjoy because of a strong local economy that enabled good financials for local companies.
ABN Amro Bank, ranked 22 in the pecking order in 2005, zoomed in to occupy the pole position. Bloomberg reported ABN Amro to have snared a 25.1% growth and $12.77 billion worth of deals.
Ernst & Young rammed into the top five deal makers’ list and took the fourth slot on the back of enabling an electric power generator prepare the lowest bid per unit for an ultra mega project.
KPMG Corp Finance took the sixth position among deal makers for valuing four arms of Reliance Communications for a merger.
To be fair to those who did not feature in the league table, many within the investment banking fraternity feel that the quality of fees should be the real differentiator on who’s successful and who’s not in deal street.
One of the dealmakers, in the top slot by virtue of valuing a company, secured only Rs 25 lakh as fee income for its efforts, while the deal size was upwards of a billion dollars.
“Fees reflect the quality of work,” an investment banker said. Citing an instance in the global financial markets, he said Goldman Sachs secured $1,087 billion of deals last year, and for its efforts earned $23 billion.
Citigroup was close behind with deals adding up to $1,034 billion, but earned only $12.4 billion.
Another interesting case is the new player on the block, Woori Investment & Securities, which, on the strength of one deal valued at $700 million, took the 20th place.
“It’s the Videocon-Daewoo deal that Woori got and the deal is now fuzzy and may come unstuck as some bankers have some issues on it,” an investment banker said.
Among the omissions, Kotak Mahindra is not featured at all in the top 20. But, to be fair to Uday Kotak’s bank, the investment bank has a chance of elbowing into the fifth position if certain deals are accounted in its favour.
Source : DNA
ABN Amro Bank, Deutsche Bank and Rothschild were given credit for a deal which is still in the making, though the pecking order could change if the Tatas fail in their bid to acquire the Anglo-Dutch steelmaker.
Indeed, the reality is that more and more billion dollar acquisition deals are being scooped up in the global market place by Indian companies, and big ticket investment banks with deep pockets may be expected to appear on the scene increasingly.
This year’s deal tables prepared by Bloomberg have thus raised hackles in the deal street, perhaps distracting them a bit from the robust deal pipeline they enjoy because of a strong local economy that enabled good financials for local companies.
ABN Amro Bank, ranked 22 in the pecking order in 2005, zoomed in to occupy the pole position. Bloomberg reported ABN Amro to have snared a 25.1% growth and $12.77 billion worth of deals.
Ernst & Young rammed into the top five deal makers’ list and took the fourth slot on the back of enabling an electric power generator prepare the lowest bid per unit for an ultra mega project.
KPMG Corp Finance took the sixth position among deal makers for valuing four arms of Reliance Communications for a merger.
To be fair to those who did not feature in the league table, many within the investment banking fraternity feel that the quality of fees should be the real differentiator on who’s successful and who’s not in deal street.
One of the dealmakers, in the top slot by virtue of valuing a company, secured only Rs 25 lakh as fee income for its efforts, while the deal size was upwards of a billion dollars.
“Fees reflect the quality of work,” an investment banker said. Citing an instance in the global financial markets, he said Goldman Sachs secured $1,087 billion of deals last year, and for its efforts earned $23 billion.
Citigroup was close behind with deals adding up to $1,034 billion, but earned only $12.4 billion.
Another interesting case is the new player on the block, Woori Investment & Securities, which, on the strength of one deal valued at $700 million, took the 20th place.
“It’s the Videocon-Daewoo deal that Woori got and the deal is now fuzzy and may come unstuck as some bankers have some issues on it,” an investment banker said.
Among the omissions, Kotak Mahindra is not featured at all in the top 20. But, to be fair to Uday Kotak’s bank, the investment bank has a chance of elbowing into the fifth position if certain deals are accounted in its favour.
Source : DNA