A boutique bank just scored a huge payday on a $28 billion merger
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Guggenheim Securities scored a monster payday Wednesday on the ACE Limited-Chubb merger, a $28 billion acquisition that creates an insurance industry behemoth.
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Guggenheim is listed as the lone bank representing Chubb in the transaction. Morgan Stanley is on the other side of the deal. Both banks could potentially reap more than $100 million in deal fees, depending on how the transaction is structured.
Typically banks earn between 1% and 2% on big deals. But, a deal as huge as ACE's $28 billion buy sometimes command lower percentages. The stocks of both Chubb and ACE rose in trading Wednesday morning.
It comes in a year where boutique banks have continued to take more money from big investment banks. It also comes as M&A could potentially top all-time highs set in 2007.
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