The autumn deal-doing season kicked off in style in September as Vodafone announced the $130bn disposal of its 45% stake in Verizon Wireless to Verizon Communications and GlaxoSmithKline (GSK) sold off its drinks brands Lucozade and Ribena for £1.35bn.
Slaughter and May, led by corporate partner Roland Turnill, took the lead for Vodafone on one of the biggest corporate deals in history, working alongside Simpson Thacher & Bartlett in the US. Hogan Lovells had a secondary role advising Vodafone.
Macfarlanes acted for Verizon with a team led by senior partner Charles Martin and corporate partner Graham Gibb. US advice was provided by Wachtell, Lipton, Rosen & Katz partners Daniel Neff and Steven Rosenblum.
Slaughters has a longstanding relationship with the telecoms giant and is one of its panel advisers. Turnill acted on Vodafone’s 2011 $5bn acquisition of Essar’s minority shareholding in Vodafone Essar.
‘I see the trend of a high volume of disposals of non-core assets continuing.’ Charlie Jacobs, Linklaters
There has been market speculation that the instruction marks a victory for Slaughters and flagging loyalty towards fellow panel member Linklaters, which has traditionally advised on many of Vodafone’s largest corporate deals, including its record-breaking $184bn takeover of Mannesmann in 2000.
But according to one Vodafone insider, the decision erred more towards the logistical after Linklaters, led by corporate partner Iain Fenn, acted on the telecoms giant’s €7.7bn takeover of Kabel Deutschland as recently as June.
‘I see the trend of a high volume of disposals of non-core assets continuing.’
Charlie Jacobs, Linklaters
Turnill told Legal Business: ‘Corporates remain cautious and prudent but, as Verizon proved, financing is available for the right type of deals. This was also quite a special situation, a pre-existing joint venture with a natural buyer and a natural seller.’
Linklaters corporate rainmaker Charlie Jacobs added: ‘I see the trend of a high volume of disposals of non-core assets continuing. These are not easy to implement on the legal side and often have quite complicated separation issues. Mega deals are currently even harder to execute for a variety of reasons, including shareholder buy in, antitrust and the general appetite on risk.’
Verizon’s acquisition was funded by a similarly record-breaking $79bn corporate bond issue. Debevoise & Plimpton advised the New York Stock Exchange-listed communications company on the issue, fielding a Manhattan team led by corporate chair Jeffrey Rosen, and corporate partners Michael Diz and Steven Slutzky working alongside tax partner Peter Furci.
Another high-profile Magic Circle mandate last month saw Allen & Overy win an instruction to advise GSK on its £1.35bn sale of drinks brands Lucozade and Ribena to the Japanese consumer goods company Suntory Beverage & Food. The firm was successful in its pitch against GSK’s other preferred firms, with corporate partners Edward Barnett and Andrew Ballheimer leading, alongside antitrust partner Alasdair Balfour and employment partner Mark Mansell.
Clifford Chance is advising Suntory, led by corporate finance partner Joel Ziff alongside fellow corporate partner Robert Crothers and IT partner André Duminy.