Pfizer-Allergan Deal Canceled; Investment Banks Lose Out on $350 Million Pay Day

Good morning Goldman Sachs. I’m so sorry to hear about your investment bank fee windfall being washed away. It was a nice little pay day, especially in this desert of a market where fees are a harsh rarity.

But I’m sure you’ll pick yourselves up and go get another $160 billion deal, no?

Pfizer will probably pay $120 million to $150 million in fees while Allergan’s advisers will split $160 million to $200 million, according to estimates from consultants Freeman & Co. Goldman Sachs Group Inc., Centerview Partners, Guggenheim Partners and Moelis & Co. worked for Pfizer. Allergan was advised by JPMorgan Chase & Co. and Morgan Stanley.

With the deal behind it, Pfizer said it would decide this year about whether to split off its hundreds of generic medicines into a separate business. It had put off making that decision until 2019 after announcing its deal with Allergan last November.
Allergan said it would move ahead with plans for its $40.5 billion sale of its generic drug business to Israel’s Teva Pharmaceutical Industries. It expects the transaction to close by June.

Thanks to the U.S. Treasury new rules on tax inversions, corporations are now trapped inside of our tax hell and can never leave.

Pfizer will pay Allergan $150 million to reimburse expenses from its deal.

Both PFE and AGN are higher this morning. They both announced alternative plans that no one gives a shit about.

Moving on please.