UBS Warburg jumps to third place in European M&A league

UBS Warburg, the City investment bank, elbowed its way into the coveted top three in the European merger and acquisition advisory league tables in the first nine months of the year, advising on 107 deals worth $199bn.

UBS Warburg, the City investment bank, elbowed its way into the coveted top three in the European merger and acquisition advisory league tables in the first nine months of the year, advising on 107 deals worth $199bn.

Goldman Sachs and Morgan Stanley Dean Witter once again swept the board in the latest Thomson Financial advisory rankings taking first and second places respectively. Combined, the two top firms accounted for 73 per cent of deals by value, while the top three made up 89.7 per cent. A big surprise was the performance of Merrill Lynch, which fell to eighth place in terms of deals announced - although in terms of deals completed so far this year in Europe it was still in third place with 35.3 per cent, against 29.3 per cent for UBS and 29.3 for fifth-placed Rothschild.

Heino Teschmacher, Warburg's co-head of M&A, said: "We are naturally delighted although in fact the number three, four and five are all very close. The important thing is that we are in the flow of activity, which is good for clients and puts us in a position where we can attract and pay the right people."

The figures were calculated before taking into account the recent flurry of consolidation between the middle ranking advisory firms, which has opened up a real competition for the third place. Taken together Credit Suisse First Boston and Donaldson Lufkin Jenrette advised on deals worth in total $37.12bn well ahead of the $36.2bn announced for Morgan Stanley, currently number two. CSFB is taking over DLJ.

Chase and its agreed takeover target, JP Morgan, would also have seen their league table performance substantially enhanced. Separately, JP Morgan was in 11th place with Chase in 12th. But together the firms advised on $23.7bn of deals in Europe, the fourth biggest total.

Salomon Smith Barney has already benefited substantially from the takeover of Schroders. The firm took fifth place in European advisory ranking, with a 16 per cent share, and fourth place globally with 20.5 per cent.

Rothschild, Lazard and Cazenove, the three surviving UK players came 10th, 7th and 17th respectively, although Rothschild was fifth in terms of deals completed. The UK was again the biggest single European M&A market, producing 830 deals with a combined value of $60bn. The focus has however shifted in the third quarter. The UK accounted for 30 per cent of deals compared with 50 per cent in the previous quarter.

Globally, the M&A market continues to be dominated by the traditional triumvirate of Goldman, Morgan Stanley and Merrill Lynch both in terms of deals announced and deals completed. Together they accounted for some 70 per cent of deals with the credit being split roughly 50:50 albeit slightly in Goldman Sachs' favour.