Bloomberg News reports that bankers from Rothschild, working with Publicis, and Moelis, which advised Omnicom, led a small army of advisers on the deal that also included Morgan Stanley and Bank of America. Instead of as much as $70m the firms would have shared for a successful deal, the banks are likely to receive $2m to $4m each in retainer fees, according to research firm Freeman & Co.
Publicis and Omnicom announced they would end discussions on the $35 billion merger they announced in July of last year as they couldn’t overcome obstacles. The deal would have vaulted the combined business past WPP Plc to make it the world’s largest advertising company, bringing agencies such as Saatchi & Saatchi and BBDO under the same roof.
'The bankers won’t walk away empty-handed, but an element of the fee would depend on the successful completion of the deal', Ismail Erturk, a senior lecturer on banking at Manchester Business School, he said in an interview.
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