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M&A Advisory (Pfizer buy Sanofi (Sanofi 3bn shares. 1 share = 9 EUR…
M&A Advisory
Pfizer buy Sanofi
Sanofi 3bn shares. 1 share = 9 EUR
Pfizer offer 10 EUR/share. Total = 30bn
Raise 30bn
Shares: 10 EUR/share = 1bn
Morgan Stanley
Buys 1bn shares
Firm commitment
Sell shares higher price = make profit
Risks
Market risk
Reputational risk
Promote company even if bad.
Legal risk
Promote company even if bad.
Bonds: 10 000 bonds 1mn EUR face value = 10bn EUR
Societe Generale
Book building process
Risks
Reputational risk
Legal risk
Loan = 10bn EUR
J.P Morgan
Loan 5% interest rate. Deposits less interest rate.
Collateral = Pfizer office buildings and patents
Risks
Credit risk
Pfizer might not pay back.
Collateral value risk
Office buildings might drop in value.
Legal risk