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A Few More $130 Billion Deals Should Make Everyone Forget About That Damned Whale

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A decade in the making, the Verizon-Vodafone deal was well worth the wait for Jamie Dimon (and everyone else).

The move by Verizon—the second-biggest takeover deal ever, after Vodafone's purchase of Mannesmann AG in 2000—is expected to generate $500 million or more in total fees for advisers and those putting together the debt-financing package and performing other functions to facilitate it, like currency conversion, according to people familiar with the matter and estimates from advisory firm Freeman Consulting Services.

An amount in that ballpark would be a contender for the biggest fee bonanza on a single deal at least in the past 15 years, according to Freeman, rivaling the $530 million in fees from the Mannesmann deal.

The Verizon transaction is expected to generate business at nearly every big banking house. But some, including J.P. Morgan Chase & Co. and Morgan Stanley, are expected to come out ahead of others. They are leading the financing effort, which is also expected to be historic….

The initial bond sale, expected to be at least $20 billion, would top Apple Inc.'s $17 billion debt issuance in April, at the time the largest corporate-bond offering on record….

J.P. Morgan's chairman and chief executive, James Dimon, is no newcomer either, having counseled Verizon's board in recent years on various possible deal structures, a person familiar with the matter said.

Mr. Dimon on Friday traveled to Verizon's headquarters just blocks from Wall Street to attend a meeting of the telephone giant's board. His goal, according to people familiar with the matter: help assure Verizon Chief Executive Lowell McAdam and his fellow directors that the company could pull off a $61 billion debt sale and remain on sound footing. He succeeded.

Besides Guggenheim and Mr. Taubman, J.P. Morgan and Morgan Stanley are lead financial advisers to Verizon on the deal. Barclays PLC and Bank of America Merrill Lynch are also lenders and financial advisers to Verizon. With Vodafone are its long-time advisers Goldman Sachs Group Inc. and UBS AG.

Fees in Verizon Deal Could Near a Record [WSJ]



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