BEST INVESTMENT BANKS 2007

Global Finance, Jun 2007 by Platt, Gordon

NORTH AMERICA

The Blackstone Group

Last September a private equity consortium led by The Blackstone Group acquired Austin, Texas-based Freescale Semiconductor in a $17.6 billion transaction. Blackstone has raised a total of $75 billion for alternative asset investing since its formation in 1985, of which about $30 billion has been for private equity investing. In a filing with the US Securities and Exchange Commission in March, Blackstone said it is planning an initial public offering but did not disclose its proposed value. The firm plans to list on the New York Stock Exchange. Last year Blackstone purchased a 4.5% stake in Deutsche Telekom for $3.6 billion. It also teamed with Bain Capital to purchase arts and crafts retailer Michaels Stores, based in Irving, Texas, for more than $6 billion. In February 2007 it agreed to acquire Pinnacle Foods for $2.2 billion. Blackstone has opened a private equity office in Hong Kong to expand its investment activities in Asia.

WESTERN EUROPE

Cinven

Founded in 1977, Cinven is one of the most successful firms in the European buyout market. In June 2006 it completed fundraising for its fourth fund with commitments of over $8.8 billion. The fund was heavily oversubscribed and attracted more than 100 institutional investors from 23 countries. Operating out of London, Frankfurt, Milan and Paris, Cinven is experienced at handling large, complex transactions. Last July it joined with Warburg Pincus to acquire Casema, the third-largest cable operator in the Netherlands. Warburg Pincus contributed its stake in Dutch cable operator Multikabel to the enterprise, which was valued at $3.5 billion.

LEGAL ADVISERS

GLOBAL

Sullivan & Cromwell

New York-based Sullivan & Cromwell has a diverse client base equally divided between the US and the rest of the world. In the Western hemisphere it represented AT&T in its $83 billion buyout of BellSouth last year. It represented The Bank of New York in its merger with Mellon Financial and advised Alabama-based AmSouth Bancorporation on its $10 billion merger with Regions Financial. It also advised Argentina-based pipe maker Tenaris on its agreement to buy Houston-based Hydril for $2.2 billion. In Norway Sullivan & Cromwell advised Statoil on its $30 billion acquisition of Norsk Hydro's oil and gas business. Some 20% of the firm's non-US clients are located in Asia.

NORTH AMERICA

Sidley Austin

Sidley Austin was the leading legal adviser to US-based issuers of debt, equity and equity-related offerings in 2006, with $374 billion in proceeds from 548 issues, according to Thomson Financial. With 1,700 lawyers, it is one of the world's largest law firms. It was founded in Chicago in 1866. In February 2007 Sidley Austin represented Equity Office Properties Trust in its $39 billion acquisition by The Blackstone Group. It acted for Washington Mutual Bank last year in establishing the first covered-bond program under US law.

WESTERN EUROPE

Linklaters

Linklaters has 30 offices in 23 countries and 520 partners worldwide. It was the leading legal adviser to managers of European equity and equityrelated offerings last year, with more than $40 billion in proceeds from 68 deals, according to Thomson Financial. Last September it advised Royal Bank of Scotland on the largest ever securitization, an offering of mortgage-backed securities. Linklaters also advised on the acquisition financing for Germany-based truck maker MAN to acquire Scania of Sweden. In December 2006 it advised BBVA of Spain on its $1.27 billion strategic alliance with CITIC Group of China.