Friday 14 December 2018

Bankers pick up €242m in advisory fees in 2018

Billionaire Xavier Niel
Billionaire Xavier Niel
Donal O'Donovan

Donal O'Donovan

Investment banks have earned $280.55m (€242m) advising on large Irish mergers and acquisitions and capital raising deals so far this year, according to data provider Thomson Financial.

Last week Smurfit Kappa said it has spent €12m on its successful defence against a €9bn takeover bid from rival International Paper.

New York-based Citi and home-grown financial advisers Davy acted for Smurfit Kappa on the deal.

Earlier in the year accounts for Eir showed it spent €12m preparing its sale to NJJ and Iliad, firms linked to French billionaire Xavier Niel.

The Thomson Reuters data suggest so-called bulge bracket global investment banks - JP Morgan, UBS, Goldman Sachs, Citi and Bank of America Merrill Lynch - were the biggest earners on Irish deals, which included large cross-border deals by the likes of CRH and Smurfit Kappa.

Globally, investment bankers are enjoying pay increases of an average of 5pc to 10pc across financial services this year, according to New York-based analyst Johnson Associates.

The biggest increase will likely be in equity sales and trading, where bonuses could climb as much as 20pc.

The exception is tipped to be merger advisory work, where incentives could fall.

Irish Independent

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