Perella Loses $22.5 Million Fee After NYSE, Deutsche Boerse Deal Blocked
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.
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