This article was featured in Bloomberg News. Very seldom does the name David de Rothschild make the public forum. His wife, Princess Olimpia Aldobrandini is like a ghost, yet her lineage dates back to the Black Nobility and the Vatican. You won't find too many images of her.
U.S. firms are buying because the Federal Reserve has turned on the printing press. The world should "stop" accepting toilet paper as legal tender.
Rothschild Sees Momentum as U.S. Firms Seek Global Acquisitions
By Elisa Martinuzzi - Jun 10, 2013 3:57 AM ET
U.S. firms are buying because the Federal Reserve has turned on the printing press. The world should "stop" accepting toilet paper as legal tender.
Rothschild Sees Momentum as U.S. Firms Seek Global Acquisitions
By Elisa Martinuzzi - Jun 10, 2013 3:57 AM ET
David de Rothschild, chairman of Rothschild Group, said he expects the merger
advisory business to continue to expand in the U.S. as companies seek expertise
on global deals.
“It’s a moment where U.S. corporates are looking for international investments and contrary to a lot of U.S. boutiques, which are full of very talented people, we have a very strong international, global network,” de Rothschild said in a June 7 interview in Venice. “We had quite a good year last year, we are seeing much more momentum.”
Companies are “conscious of the fact that the environment is difficult, that
they do not want to overpay,” said de Rothschild, 70. “They don’t want to do
something wrong just because they have the opportunity of doing something.”
On June 26, the company reports earnings for the fiscal year ending March 2013, according to its website.
“As soon as there’s an element of visibility, whatever that is, sentiment becomes more positive, there will be more activity,” said de Rothschild. “There’s definitely a bounce back in the U.S.”
The firm is attracting bankers in the U.S., said de Rothschild, without elaborating. He sees some banks eliminating more jobs as regulators demand that lenders increase their capital and business remains sluggish.
“Have we reached a point where things have stabilized? Probably more or less, on global view,” said de Rothschild. “But there are probably still some firms that have to reduce and are cutting costs.”
“It’s a moment where U.S. corporates are looking for international investments and contrary to a lot of U.S. boutiques, which are full of very talented people, we have a very strong international, global network,” de Rothschild said in a June 7 interview in Venice. “We had quite a good year last year, we are seeing much more momentum.”
Rothschild, the world’s largest
family-owned advisory firm, has gained market share in North
America, where it ranked 10th last year for mergers, up from 16th in 2011,
data compiled by Bloomberg show. This year, Rothschild ranks 32nd in the region
after missing out on the top 20 deals, and globally slipped to 16th from No. 9
in 2012, the data show. Recession is holding back mergers and acquisitions in Europe as an
uncertain outlook makes executives wary of combinations, de Rothschild said.
Overall, business has been
tougher this year than in the second half of 2012, said de Rothschild, who was
in Venice for
a meeting of The Council for the United
States and Italy, an organization that promotes cooperation between the
two nations. Mergers so far this year total $834 billion, compared with $1.2
trillion in the second half of 2012, according to data compiled by Bloomberg.
JAB Deal
Rothschild’s biggest merger assignment this year is advising Joh. A. Benckiser on its purchase of D.E Master Blenders 1743 NV, a $10 billion transaction that will build a coffee conglomerate in the industry’s biggest deal ever. In the U.S., Rothschild is advising AMR Corp. on its combination with US Airways Group Inc., a $3 billion deal.
Rothschild last year combined
its French and U.K. arms under Paris Orleans SA
(PAOR), a French publicly-traded company controlled by the banking dynasty
that made its fortune financing the Duke of Wellington’s campaign against
Napoleon almost 200 years ago. Paris Orleans posted a 22 percent rise in
advisory sales to 256.8 million euros ($339 million) in the three months to
December.
On June 26, the company reports earnings for the fiscal year ending March 2013, according to its website.
U.S. Bounce
This year, Rothschild has slipped behind Lazard Ltd., the largest independent merger-advisory firm, which ranks eighth among global merger advisers after securing a role on three deals of $10 billion or more, data compiled by Bloomberg show.“As soon as there’s an element of visibility, whatever that is, sentiment becomes more positive, there will be more activity,” said de Rothschild. “There’s definitely a bounce back in the U.S.”
The firm is attracting bankers in the U.S., said de Rothschild, without elaborating. He sees some banks eliminating more jobs as regulators demand that lenders increase their capital and business remains sluggish.
“Have we reached a point where things have stabilized? Probably more or less, on global view,” said de Rothschild. “But there are probably still some firms that have to reduce and are cutting costs.”
To contact the reporters on this
story: Elisa Martinuzzi in Milan at emartinuzzi@bloomberg.net
To contact the editor
responsible for this story: Edward Evans at eevans3@bloomberg.net
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