Advisers on London Stock Exchange-Deutsche Boerse deal could rake in up to £305m
The London Stock Exchange and Deutsche Boerse could pay up to £305m between them to bankers, lawyers, accountants and PRs working on their merger.
The top-end estimate was revised up today from £234m in light of an extended probe by the European Commission into the deal.
Credit Suisse analysts noted today:
We believe merger related expenses are more than justified by the value creation from the deal, and note that roughly half the costs relate to financial and corporate broking advice which will be payable in full only if the deal closes.
The UK company is now expecting to pay between £153m and £175m in fees, up from a June estimate of between £114m and £136m.
Read more: LSE and Deutsche Boerse: Behind the deal
| London Stock Exchange fees | ||
| Advice area | Maximum fees estimate | Previous maximum fees estimate |
| Financial and corporate broking | £97.7m | £85.6m |
| Legal | £62.4m | £37.5m |
| Accounting | £6.4m | £3.2m |
| PR | £1.8m | £1.7m |
| Other | £6.8m | £7.6m |
| Total | £175.2m | £135.6m |
On the other side of the deal, Deutsche Boerse now expects to pay between £123m and £129m, up from a previous estimate of £85m to £98m.
Bankers advising on financial and corporate broking stand to make up to £98m from the London Stock Exchange and £51m from Deutsche Boerse.
Robey Warshaw, Barclays, Goldman Sachs and JP Morgan are lead financial advisers to the London Stock Exchange, while Perella Weinberg is lead adviser on the Deutsche Boerse side.
The London Stock Exchange, advised by Freshfield Bruckhaus Deringer and Herbert Smith Freehills, could pay up to £62m in legal fees, versus £49m on the German side.
Read more: Spotlight falls on LSE-Deutsche Boerse merger: Who knew what, and when?
Accountants could be paid up to £6m by the London Stock Exchange and £4m by Deutsche Boerse.
The German company is due to outspend on public relations, with fees of £5m versus £2m.
‘Other’ expenses for Deutsche Boerse could total £20m, while the London Stock Exchange said it could pay £7m in this area.
| Deutsche Boerse fees | ||
| Advice area | Maximum fees estimate | Previous maximum fees estimate |
| Financial and corporate broking | £50.9m | £46.2m |
| Legal | £49.2m | £30.9m |
| Accounting | £4.3m | £4m |
| PR | £4.7m | £2.8m |
| Other | £20.3m | £14.5m |
| Total | £129.4m | £98.5m |