Can financial advisor offer bridge loan in an acquisition to the acquiror, a listed company?
Hey guys I was wondering if a financial advisor can offer loan to a listed company (buyer) in an acquisition. Is there any rules/regulations regarding this issue?
I am from a top Chinese investment bank and would like to learn how the US treat this. In China, financial advisor to a listed company is required to be independent and thus offering a bridge loan in an acquisition is prohibited.
However I think this should be treated differently and am pretty curious about things in the US. Would like to hear from you guys.
My first question raised. Thanks!
https://www.businessinsider.com/att-time-warner-bank-advisor-fees-2016-…
"JPMorgan, Bank of America Merrill Lynch, and Perella Weinberg are advising AT&T on the buy side, according to Thomson Reuters, with JPMorgan and Bank of America Merrill Lynch providing a $40 billion bridge loan."
Limited experience in regulations, but this is one example. I believe this is [one of many reasons] why a lot of the U.S. "balance sheet banks" i.e. JPM and BAML are doing well.
It’s actually very common and as has already been said, a big reason that balance sheet banks do well. Generally if one of our clients does an acquisition we will lend to finance it. On the sell side, it is also possible for a bank to provide financing to the buyer to facilitate its purchase of the selling company.
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