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Goldman Sachs International (Lead Financial Adviser to ARM)
Lazard & Co., Limited (Lead Financial Adviser to ARM)
UBS (Financial Adviser and Joint Corporate Broker to ARM)
Barclays (Joint Corporate Broker to ARM)
Brunswick (PR Adviser to ARM) +
The Raine Group (Financial Adviser to SoftBank)
Robey Warshaw LLP (Financial Adviser to SoftBank)
Mizuho Securities Co., Ltd. (Financial Adviser to SoftBank)
Finsbury (PR Adviser to SoftBank)
Sard Verbinnen & Co. (PR Adviser to SoftBank)
The three banks advising SoftBank — Robey Warshaw, The Raine Group and Mizuho are to get £45 million.
Fees for arranging the bridging loan to help pay for the deal will be between £73.6 million and £110 million.
SoftBank’s legal advisers at Morrison Foerster and Freshfields Bruckhaus Deringer will receive £5.5m, while £1.5m-£2m will go to Finsbury for public relations work.
ARM advisers Goldman Sachs, Lazard, UBS and Barclays will share £51 million.
Lawyers Slaughter and May and Davis Polk & Wardwell will be paid £9 million.
The PR company Brunswick will get £4 million.
Stamp duty will cost £120 million.
How about organising a campaign on 38 Degrees?
As you say SEPAM, this deal seems to be being done in a rush and on the basis of trust. First talks between Seegars and Son were in June and, if shareholders vote in favour on Aug 30, the deal is due to complete Sept 5. Not much time for due diligence! This is shaping up to be another Time Warner – AOL deal which, like this deal, involved a physical assets company buying an IP company – and ended up destroying 97% of their shareholder value after declaring a $99 billion loss and a $45 billion write down within two years of the deal.
Yes indeed Nigel, the City have managed to get their hands on ARM and are inviting everyone in to take a share. A great company sacrificed to give the finance boys a pay-day. Why does ARM need three banks to advise it? Won’t one do? It’s disgusting.
People get bent out of shape when they see these sums being earned by professional bodies for “advice” and in some cases “for being there”.
I am sure we would all want to be in that position, I can think of an abundance of such situations over the years, doesn’t make it right but I don’t see a scramble of legislation trying to change it.
Look no further than the decision Softbank to pay that amount in the first place…..ludicrous but that is the world we live in ……£90M for a footballer ??
I have had many due diligence projects relating to company acquisitions and I know what this entails. Much is to check there are no skeletons in the cupboards at the other part of the acquisition. Considering the sums involved I’d say (*) that Softbank has assumed ARM is run by gentlemen.
Patent due diligence, which I have done many times, is to check what have been filed, where they were filed, what are still in force, and most difficult of all, check if the quality of the patents are good. That means to see if they protect the current and future projects and are enforceable.
(*) This si something I can say since I was not involved and since I am pseudonymous here.
That would be the best, and infinitely best value, advice ARM could get, Dr Bob. This is a tawdry City stitch-up.
is it too late to advise ARM not sell and claim £1000 for the advice?
Massively over-advised SEPAM, this smacks of a City feeding-frenzy with all the insider chaps getting a fee. A squalid end to the ARM story which was a great one. Shows how greedy and ruthless the City boys can be.
ARM appears to be over-advised. Isn’t it a bit odd to have two lead advisers? And what did the PR advisers provide?