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Bankers feasting on Schering-Plough/Merck deal…

Yesterday, Schering-Plough (SGP) filed this amended S-4, updating information in their May 20 filing (which we footnoted here). While much of the information wasn’t new, there were some new disclosures on how much the bankers providing the advice to Schering-Plough and Merck (MRK) are making on the $44 billion deal that was announced back in March.

According to the filing, JPMorgan (JPM), Goldman Sachs (GS) and Morgan Stanley (MS) are all providing advice to the pharmaceutical giants. The cost of that advice? About $100 million. Here’s how it breaks down according to the filing: JP Morgan will collect $45 million from Merck; Goldman will get up to $33.3 million from Schering-Plough and Morgan Stanley, which acted as an additional financial advisor to Schering-Plough and provided the all-important “synergies valuation” will collect $22 million. Indeed, the word synergy (or some variation) is used over 50 times in the filing.

Also interesting is that Goldman and Morgan Stanley each collected 1/3 of their fees up front, while JP Morgan has only collected $5 million so far. Of coure, maybe that’s normal when it comes to advising the acquiree. Still, it’s hard to imagine what the three firms could have done collectively to be worth $100 million in fees.