Bank of America’s Australian offices are said to be a hive of activity right now, putting fear into rivals winding down for Christmas that a CSL deal may land sooner than expected.
The American bank is known to be aiding CSL on a potential deal to buy Vifor Pharma in Switzerland, currently worth about $11.5bn, and most expect a mammoth equity raising.
A February deal had been expected, but given the level of activity at BoA last week, some think a raising could happen by Christmas – and be around $6bn rather than the $3bn to $4bn earlier predicted – as CSL looks to capitalise on its rallying share price. There’s plenty at stake.
A deal of that size could yield about $100m in fees in what could be one of the most lucrative transactions of the year for bankers.
And that’s saying something – 2021 was the second highest year on record for Australian mergers and acquisitions, collectively worth more than $250bn.
Shares in Vifor Pharma have rallied from about $156 to $185 after both groups refused to rule out reports that they are in exclusive talks about a deal.
Right now, there is a mixed views over whether a deal makes sense, other than giving CSL a revenue stream.
But a raising is still expected to fly out the door for the $140bn stock, with CSL’s chief executive Paul Perreault and chairman Brian McNamee highly regarded.
More Coverage
HMC moves in on Healthscope opportunity
The listed real estate group says all options are on the table for ensuring its major hospital tenant keeps trading.
Privatisation of NZME on cards amid ‘clickbait’ complaints
There are rumblings across the Tasman over the state of New Zealand’s media industry, and some wealthy Kiwis are said to be plotting to do something about it.