Bank fees in T-Mobile deal could reach $145m
The bankers advising mobile operator AT&T on its $39bn deal to take over T-Mobile USA could walk away with $145m (£89m) in fees, a US consultancy has said.
Morgan Stanley and JPMorgan Chase will gain the lion’s share of the fees to provide M&A advice to both sides, with loan arrangement fees making up the remainder, according to consultancy firm Freeman & Co.
JPMorgan and two boutique firms, Greenhill and Evercore, advising AT&T should split $55-60m between them while the banks working with seller Deutsche Telekom – Morgan Stanley, Credit Suisse and Deutsche Bank – should take home $50-55m, Freeman said.
Fees to underwrite a bridging loan to secure the deal will generate even more fees for JPMorgan. The bank could have gained fees of $20m for helping AT&T to borrow $20bn unsecured for 18 months – the second-largest bridge loan since 2000, according to Thomson Reuters LPC.
AT&T’s acquisition is the biggest global telecoms deal since 2006, when AT&T bought BellSouth for $89.4bn.