You guys almost sound upset/concerned with the size of the fees? These are totally consistent with the norms (these are huge deals) and are much needed for the infrastructure that exists on wall street. Gotta keep the lights on. You can’t imagine how many deals AREN’T taking place, and these firms are committing resources to deals that happen and don’t happen. This is the grease of capitalism, unlike what Washington is doing in taking over unionized Detroit

http://www.sec.gov/Archives/edgar/data/78003/000095012309013052/y74822a3sv4za.htm#121

And, the January 26, 2009 Bloomberg link — for the PFE-WYE fees estimate — guess-timate, really:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aviIaVfGbqjM&refer=home

Namaste

I did see this yesterday, in the S-4, as amended, but then went off to scout the Pfizer deal’s fees — as it is about a third larger than the SCH-Merck deal.

From the Pfizer S-4 we can confidently deduce that Morgan Stanley (advising Wyeth) will receive $65 million, of which $50 million is contingent on the deal’s closing, and Evercore will receive $24 million, of which $19 million is contingent upon a closed deal.

More murky is the fee total for Pfizer’s half on the deal. I honestly cannot find it in the various 424’s, 425’s and S-4/A’s PFE has filed. Bloomberg reports it thus:

“. . . .Pfizer’s advisers — Bank of America, Goldman Sachs, JPMorgan, Barclays Plc and Citigroup Inc. — together may get $82 million in fees, not counting what they’ll earn arranging a $22.5 billion one-year loan that will be replaced later with bonds. . . .”

OTOH, Bloomberg estimates the fee grand total at over $200 million for PFE-WYE advisors.

If that is accurate, PFE-WYE dwarfs SGP-MRK on fees, and is grotesquely out of proportion (at over twice the fee-level, but only one-third larger in transaction value).

It could be argued that PFE-WYE advisors were deeper in melt-down, while they evaluated the financing, and acquring risks — and by comparison, SGP-MRK advisors faced a less troubled market in March of 2009 — but that argument doesn’t cut a whole lot of ice.

No, I think the PFE-WYE deal takes the “Golden Trough” award, for 2009 — and perhaps the decade. By the way, the WSJ Blog copied your stuff, but totally missed this PFE-WYE angle in its recital of outsized fees of the decade. Do let them know. Heh.

Again, Great stuff — and, Namaste!

PS: I may post this comparison of the two deals’ fee-levels, on mine, later tonight.