City dealmakers are in line for a £340 million fees bonanza for their roles in the £26 billion bidding war for Sky.
Cable giant Comcast is set to pay advisers as much as £243 million for their help in its pursuit of the British broadcaster, documents released by the US media firm reveal. They also estimate FTSE 100 company Sky will shell out as much as £96 million to its own bankers, lawyers, accountants, and PR advisers.
Once fees from Comcast’s bidding rival Rupert Murdoch’s 21st Century Fox are included, it could end up being one of the biggest paydays in City history.
War: Cable giant Comcast is set to pay advisers as much as £243 million for their help in its pursuit of Sky
Investment bankers have come under fire in the past over vast bonuses paid, most of which are earned from advising on such mega-deals.
Fox has not yet posted its own formal offer document detailing how much it is paying City firms, but the sums are likely to be in the same league as those paid by Comcast.
The complex transatlantic bidding war could intensify because Fox, which already has a 39 per cent stake in Sky, is expected to make a higher offer.
Some analysts believe escalating bids could end up valuing Sky at more than £30 billion.
The largest share of the fees owed by Comcast, up to £170 million, will go to lenders who are helping to finance the potential takeover.
Banks set to make a killing from the deal include heavyweights Morgan Stanley, Bank of America Merrill Lynch and Barclays.
Smaller, specialist firms are also likely to get a huge slice of the £38 million on offer from Comcast to banks.
Financial advisers at London-based Robey Warshaw will get their hands on millions in fees.
The boutique firm is run by just three partners, Sir Simon Robey, Simon Warshaw and Philip Apostolides, who have become some of the most influential dealmakers in the City.
Last year, the trio shared a bonus pot of more than £60 million for their work in manoeuvring huge deals including the £79 billion takeover of Foster’s brewer SABMiller by Stella Artois maker Anheuser-Busch InBev.
Across the Atlantic, Evercore, a small Wall Street firm, is also in on the action.
The size of some of the estimated fees depends on whether Comcast is successful in buying Sky. Lawyers could pocket up to £24 million, the documents show.