DLR bills

30 January 2015 By Quentin Webb

Qatar’s $4 bln swoop on Wharf-owner Songbird didn’t take long. Once big shareholders folded, the defence against the lacklustre offer collapsed. Yet the target’s support team could pocket up to $45 mln. M&A due process certainly doesn’t come cheap.

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Qatar Investment Authority and Brookfield’s 2.6 billion pound takeover offer for Songbird Estates, is nearing its conclusion, after the duo said on Jan. 30 they had already secured 93.4 percent of the AIM-listed group, which is the majority owner of London’s Canary Wharf Group.

Songbird estimates it will pay between 17.1 million pounds and 29.6 million pounds in fees and expenses related to the offer according to a Jan. 12 filing. The estimate is before any value added tax (VAT).

The total includes 12 million pounds to 24 million pounds for “financial and corporate broking advice;” 2.5 million pounds to 3 million pounds for lawyers; 100,000 pounds for accountants, 1.5 million pounds for public relations; and a further 1 million pounds for other services.

The bidders had earlier estimated their transaction costs at 10.72 million pounds to 17.695 million pounds, including 4.8 million pounds to 11.1 million pounds for financial advice and up to 5.4 million pounds for legal work. QIA, Brookfield and the bidding vehicle’s financial advisers include Barclays, Citigroup, HSBC and Ken Costa, the former UBS and Lazard banker.

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