Barings tops league with pounds 20bn deals

JOHN WILLCOCK

Financial Correspondent

Baring Brothers has topped the UK mergers and acquisitions league table for 1995 with deals totalling nearly pounds 20bn, despite its February derivatives disaster and subsequent rescue by the Dutch bank ING.

The corporate finance arm of ING Barings, Baring Brothers, handled 26 public and private deals worth pounds 19.48bn, according to the Acquisitions Monthly magazine.

By far the biggest part of this came from one mega-deal, when Barings advised Wellcome, working with Morgan Stanley, early this year in its pounds 9.1bn takeover by Glaxo. The bank also had a hand in the second-biggest, Lloyds Bank's pounds 5.9bn takeover of TSB Group, in which it advised Lloyds. The year was also notable for seeing last year's champion, Warburg, falling to third place. Warburg first tried to merge with Morgan Stanley, failed, and was then in effect swallowed by the rival Swiss Banking Corporation to become SBC Warburg.

Four American banks benefited from the problems besetting several of their UK competitors and made big gains in the table. JP Morgan and Morgan Stanley sprang from outside the top 20 to fifth and seventh place, respectively.

Mark Burch, a director of corporate finance at Barings, said the result was "very good news. It's been a very busy and a very good year."

Mr Burch said that the weeks following the discovery of over pounds 800m in derivatives trading losses in Singapore in February had been "a very tough period". Many corporate clients had thought about their relationship with Barings, he said. "ING moved very quickly. They themselves have grown through mergers, and they had no prescribed formula for change. We also had a high level of cohesion in the group.

"There were no departures. We agreed to stick together, and this year has proved that [was the right thing to do]."

Such was the wealth of M&A activity in 1995 that Barings had to hire extra people. The UK corporate finance team grew by seven to 67, including 17 directors and 40 executives.

Such a boom year has fuelled talk of bumper bonuses. Mr Burch said: "Clearly it has been a very good year and so compensation is likely to reflect that." Barings' bonuses are decided in Feburary and paid in March, he said.

Utility bids have helped to boost figures for the year generally. Barings advised on one of the few hostile utilities bids so far. Along with Deutsche Morgan Grenfell it acted for Scottish Power in its pounds 1.1bn takeover of Manweb, the regional electricity company based in Chester.

There were 14 public bids over pounds 1bn announced during 1995, compared with only one in 1994. This also beats the 1989 record when there were 11 such deals. The number of public bids completed in 1995 rose to 84, worth a combined pounds 36.47bn, compared with 62 in 1994 totalling pounds 5.09bn.

Second is Lazard Brothers with 30 deals totalling nearly pounds 15bn. As well as advising Glaxo, the bank is working on two large pending deals - advising Granada in its pounds 3.1bn bid for Forte as well as National & Provincial in its proposed pounds 1.3bn takeover by Abbey National.

Analysts expect 1996 will be another good year, possibly as good as 1995.

UK Mergers & Acquisitions

League table 1995

Adviser Number of deals Total value

(pounds m)

Baring Brothers (4) 26 19,477

Lazard Brothers (9) 30 14,683

SBC Warburg (1) 48 13,821

NM Rothschild(11) 42 12,067

JP Morgan(-) 7 11,940

Schroders(2) 30 11,931

Morgan Stanley(-) 9 11,083

Deutsche Morgan Grenfell(6) 46 8,348

Kleinwort Benson(7) 25 8,192

Goldman Sachs(3) 13 6,835

Source: Acquisitions Monthly

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...

Reach Volunteering: Trustees with Finance, Fundraising and IT skills

Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...

Day In a Page

Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Transfer window: Ten things we learnt

Ten things we learnt from the transfer window

Record-breaking spending shows FFP restraint no longer applies
Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent