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By Ashley Armstrong, M&A Reporter8:30PM BST 29 Jun 2014CommentsComment The architects behind Carphone Warehouse and Dixons’ £3.7bn merger are set to gain as much as £22.6m for their advice. The two UK electrical retailers announced their formal merger plans in May after first admitting they were in talks about a possible combination in late February. Carphone Warehouse called on advisers at Deutsche Bank and UBS alongside lawyers at Osborne Clarke, while Citigroup and Barclays provided financial advice to Dixons with Linklaters providing legal advice to the company. The investment banks will receive the lions’ share of the two companies’ advisory fees according to the companies’ merger prospectus. The circular to shareholders reveals that Carphone will be paying between £3.7m and £10.9m to their advisors, while Dixons will pay as much as £11.7m for advisory work. The company’s spinners, Brunswick will receive £3m for their work while their public relations opposites, Citigate Dewe Rogerson, will receive a smaller sum of £1m for their Carphone role. Fees are usually determined by the complexity of a deal, the size and whether or not it is cross-border, which can see advisers spending all-nighters in the office or most of their time on red-eye flights and in airline departure lounges. Related Articles A one-stop shop winner 15 May 2014 Carphone and Dixons shares tumble on merger 15 May 2014 Dixons and Carphone face powerful forces 15 May 2014 Carphone Warehouse and Dixons announce full year earnings 26 Jun 2014 Is Philip Clarke the man to lead Tesco? 21 Jun 2014 Debenhams to open Sports Direct concessions 20 Jun 2014 Saving for your children: put them on a good footing NatWest UK Trade & Investment say Brazil's economy is simply too big for companies and investors to ignore UPS The prospectus also detailed the combined company will pay around £3.3m in salaries, excluding bonuses. It also reveals that Tim How, Dixon’s chairman of remuneration was also paid £70,030 annual fee for his 15 days work last year advising on pay structures. Sir Charles Dustone, who will be the group’s biggest shareholder with an 11.7pc stake, will also be paid an annual fee of £280,000. The mooted top-heavy board structure, which includes two joint chief executives, Carphone’s Andrew Harrison and Dixon’s Sebastian James, and fourteen directors has already raised eyebrows in the analyst community. However, sources close to the situation said the strong personalities of some of the executive team means that the structure will unlikely stay in place for long. Both companies will hold separate meetings for shareholders to vote on the merger on 17 July.
Guys, I love the talk of £1, but how will that be achieved when the two banded shares will consolidated into one combined share from 8th Aug ? if these we're to double, how happy we will be !
Lucky me, I have a load of them as well 1
The reason I suggested the SP would drop is because each time Dix has some good news around profit, the SP always falls. Profit @ £160m, compared to a few years ago is a great result IMO, but i'm sure the city will find a reason why the SP should not climb. And 26th, well if Seb talks to the press, then it will crash like it always does when he has something to say lol.
SP bound to go down on that great news !!!!
Down !
Would a business want to pull out from such a big opportunity............just don't get it, Fingers x !
EE 'to end links with Carphone Warehouse' Britain's biggest mobile operator to decide on complete withdrawal from Carphone Warehouse within weeks as regulators scrutinise its £3.2bn union of retailers Currys, owned by Dixons, and carphone warehouse Dixons, which own Currys, and Carphone Warehouse announced their merger last month after protracted talks By Christopher Williams, Technology, Media and Telecoms Editor8:30PM BST 07 Jun 2014 CommentsComment EE is poised to pull out of its relationship with Carphone Warehouse in a move that threatens the retailer’s £3.6bn merger with Dixons, The Telegraph can disclose. Britain’s largest mobile operator will conclude a review of its consumer retail strategy “within weeks”, sources said, with a complete withdrawal from Carphone Warehouse the potential result. The move would be a major blow to the retailer, which has positioned itself as the best place for consumers to independently compare deals from mobile operators. It currently offers handsets and contracts from EE, O2 and Vodafone, but the withdrawal of the biggest of the trio would seriously undermine its claims. EE serves more than 30m customers and has a one-third share of the UK market. It is also recruiting subscribers to its 4G network, who typically require a new handset, faster than O2 and Vodafone. EE has not made a final decision to end its relationship with Carphone Warehouse, sources said. But it would be the result of two of the three possible scenarios under advanced discussion. Related Articles A one-stop shop winner 15 May 2014 Carphone and Dixons shares tumble on merger 15 May 2014 Dixons and Carphone face powerful forces 15 May 2014 When quitting smoking makes sense Pru Health As UK exports continue to grow, Amy Wilson examines which sectors are most successful HSBC The mobile operator is a joint venture between Orange, the former French state telecoms monopoly, and Deutsche Telekom, its German counterpart. Gervais Pellissier, the deputy chief executive of Orange, last week urged EE to “get rid” of third party retailers and deal direct to consumers. His comments signalled the widespread desire among European mobile operators to cut out middlemen and sell to more consumers directly. They have seen their profits eroded in recent years by regulation and competition and increasingly resent the impact of third party retailers on margins. A spokesman for EE said: “While we do not comment specifically on ongoing negotiations, we can confirm that we’re formally reviewing our distribution strategy, primarily in the consumer space, with a view to fewer, deeper partnerships, based on value and shared ambitions.” EE’s review also covers its relationship with Phones4U, Carphone Warehouse’s main rival. A source said the mobile operator would end its relationship with one or the other, or both. Formed by the 2010 merger of Orange UK and T-Mobile UK, EE
Value will increase when we move into the FTSE 100 I would expect, by how much , who knows !
Dixs don't support or treat their management population very well. with the merger and store closures on the horizon, I am sure it won't get any better as they will want managers to leave to save on redundancy costs. The business talks about wanting to be in the top 25 companies to work for, never going to happen while I draw breath I am afraid. Dixs has had some great success over the last few years and it is a shame that many managers worked beyond the day job to support the business get through the difficult times, shame so many either worry about how long they have a job while others have lost the will to live and are totally pi55ed off. I wish all colleagues in store all the luck in the world and do hope that those that treat them like second class colleagues get what they have coming to them. For the share holders......GL to all that we get a return at some point on this share that just disappoints.
Just continues to disappoint !
Any experts good at understanding candles and graphs ? Where do you see the bottom ? Thanks in advance !
Lost for words !
We wish lol I will be one happy trader if this gets that far, fingers x to everyone !
Prob because the last two great trading statements the SP collapsed after Seb shared is views. They are taking a profit while they still have one is my guess !
% don't calculate the same, CPH has climbed far higher than Dix. CPH +20% while DIx around 3% If Dix was +20% we would be rubbing our hands !
Up 8p in two days again while we do nothing. Since the merger news CPH has increased +50p, we have moved 3p !
I would not expect this share to climb above 55p unless the new joint venue pays a Div.
Guys, some keep saying +60p, at some point both shares will be suspended, so how do we expect the SP to jump to +60p when it is agreed ? Thanks
Anyone know why ?