IBI Corporate Finance is the top takeover adviser in Ireland this year, leapfrogging bigger international rivals Merrill Lynch and UBS Warburg, according to recently released Bloomberg data.
As of August 23rd, 2002, IBI Corporate Finance had advised on seven transactions worth E5.3 billion, including Madison Dearborn Partners Inc.’s purchase of Jefferson Smurfit Group Plc. Second placed Merrill Lynch advised on deals worth E5.11 billion and UBS Warburg was third with E3.72 billion. Both also worked on the Smurfit acquisition.
There were 86 mergers and acquisitions announced in Ireland this year as of August 23 rd with a combined value of E7.8 billion, according to Bloomberg data, while for the same period last year, there were 108 deals worth a total E10 billion.
According to analysts at Bloomberg, Bank of Ireland has focused more on developing a mergers advisory unit than local rivals such as Allied Irish Banks, and has gained a dominant position among Irish companies. IBI also won business alongside international banks, including UBS Warburg on the Smurfit transaction and Dresdner Kleinwort Wasserstein on a E1.0 billion offer for Green Property Plc.
Irish companies typically use local firms for investment and stock broking advice and for mergers and acquisitions, though they also look outside Dublin’s business community for extra help on large transactions say analysts at Bloomberg.
In other, similar-sized European countries, local banks have mixed success competing against international rivals. In Belgium, ABN Amro Holding NV leads on transactions this year with local adviser Fortis Bank in fourth place, according to Bloomberg data. In Finland, Mandatum Pankki Oyj, the investment-banking arm of insurer Sampo Oyj, tops the table ahead of UBS Warburg.
‘Our main competition is international rather than local’‚ says IBI Director Tom Godfrey. ‘On these bigger deals there’s a lot of interest from the international investment banks but we’ve managed to hold our own in that market.’
Goodbody Stockbrokers, a unit of Allied Irish Bank, led the 2001 rankings after advising Eircom, which was sold for E3.01 billion to a group of investors. Goodbody isn’t in the top 10 this year. In fact the only Irish corporate finance advisers to make the top ten so far this year are IBI, Merrion Capital and AIB Corporate Finance. Deutsche Bank AG was second in 2001, with Goldman Sachs third and Merrill Lynch fourth.
Merrion Capital won its biggest advisory deal when Madison Dearborn hired it for its purchase of Smurfit, and that deal has vaulted Merrion into the top five.
The table below shows the top 10 advisers on transactions announced this year, based on either the bidder or the target company being Irish. The value of some deals has not been disclosed. The top five advised on Madison Dearborn’s purchase of Smurfit. |
