AT&T's Abandoned T-Mobile Deal Sends Shockwaves through M&A Landscape

Strategic Insights -

AT&T Inc.'s (T) failed $39 billion acquisition of Deutsche Telekom AG's (DTE) T-Mobile USA Inc. has sent shockwaves through the mergers and acquisitions (M&A) landscape, pushing Greenhill & Co. (GHL) to the brink of M&A league-table obscurity. According to a Bloomberg report, Greenhill has plummeted to 40th place in the M&A rankings, from 18th place with the transaction included. The abandoned deal is expected to result in a significant loss of fees for AT&T's advisers, estimated to be around $65 million by New York-based researcher Freeman & Co.

Key Takeaways:

  • Greenhill & Co.'s ranking in the M&A league-table has dropped to 40th place from 18th place due to the failed AT&T-T-Mobile deal.
  • The abandoned deal will result in a loss of around $65 million in fees for AT&T's advisers, including Greenhill, JPMorgan Chase & Co., and Evercore Partners Inc.
  • Deutsche Telekom AG's (DTE) shares were in an uptrend on November 30, 2011, at $52.31.
  • Greenhill & Co.'s shares were in a downtrend on November 23, 2011, at $34.82.
  • JPMorgan Chase & Co.'s shares were in an uptrend on December 2, 2011, at $32.04.
  • The Comtex SmarTrend Alert, an automated pattern recognition system, has indicated an uptrend for DTE, a downtrend for GHL, and an uptrend for JPM.

Statistics:

  • Greenhill & Co. has dropped to 40th place in the M&A league-table, from 18th place.
  • A loss of around $65 million in fees is estimated for AT&T's advisers.
  • Deutsche Telekom AG's (DTE) share price on November 30, 2011, was $52.31.
  • Greenhill & Co.'s share price on November 23, 2011, was $34.82.
  • JPMorgan Chase & Co.'s share price on December 2, 2011, was $32.04.

Sources:

  • Bloomberg report
  • AT&T Inc. (T) press release, December 20, 2011
  • Deutsche Telekom AG (DTE) press release, December 16, 2011
  • Comtex News Network, Inc., press release, December 16, 2011