The withdrawal of News Corp’s $13.7bn bid for British Sky Broadcasting ranks as the biggest withdrawn M&A deal globally this year.
Key highlights below:
• Advisors to BSkyB: Morgan Stanley, UBS and Bank of America Merrill Lynch and advisors to News Corp: Deutsche Bank and JP Morgan were poised to collect a combined $90m in advisory fees upon completion of the transaction. According to Freeman Consulting, the firms will likely collect 10% of the potential fee pool.
• Withdrawn M&A totals $201.4bn for year-to-date 2011, an 18% increase over the same time last year. 420 worldwide deals have been withdrawn so far this year, a 26% decrease from year-to-date 2010.
• Targets in the United States account for 32% of withdrawn M&A deals this year ($65.2bn), followed by the United Kingdom (13.7%), Canada (9.2%) and Australia (9.0%)
• Withdrawn bids in the financial sector represent 20.5% of all deal cancellations this year, followed by materials (18.3%) and healthcare (12.9%). Canceled deals in the Media & Entertainment sector totals $16.3bn for year-to-date 2011.