Goldman Sachs, which has been advising Apple on how to deal with its multibillion- dollar cash pile, and Deutsche Bank are in the lead to help the iPhone maker sell bonds for the first time in 17 years.
Bloomberg reports that Apple asked the two firms to arrange phone interviews with fixed-income investors Monday in advance of a potential deal, according to a person familiar with the offering who asked not to be identified because the terms aren’t set.
Apple, the largest U.S. maker of smartphones, has had little need for Wall Street’s services since its 1980 initial public offering and its last bond deal in 1996. Although company co-founder Steve Jobs married a former Goldman Sachs fixed- income strategist, he disliked bankers and preferred doing deals without them, according to a former Apple executive who reported to Jobs. In 2009, Apple hired Adrian Perica, a Goldman Sachs investment banker, to build a mergers-and-acquisitions team.
'Goldman’s going to be the logical play, but that doesn’t mean the others aren’t going to try', said Brad Hintz, an analyst at Sanford C. Bernstein & Co. in New York who rates Goldman Sachs’s stock outperform. 'If you’re one of the big technology players, you’re going to want to win this thing - it gives you bragging rights'.
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