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 The advisers working
on a possible deal between Kraft Foods Inc. (NYSE:KFT) and Cadbury plc
(NYSE:CBY) could make a pretty profit if Kraft ups its bid or if rivals
Nestle SA or Hershey Co. (NYSE:HSY) strike deals.According to The Telegraph, advisers could get 0.7% to 1.25% of the total deal value. If Cadbury had accepted the £10.2 billion ( $16.7 billion) bid from Kraft, then commissions could have been over £250 million. But it didn't. So, if the valuation increases, fees will be higher. According to analysts Bloomberg interviewed, a deal to take over Cadbury could be as high as $21 billion. The advisers announced in a Kraft press release include Lazard's (NYSE:LAZ) William Rucker, Peter Keirnan and lead adviser and CEO Bruce Wasserstein, who is also chairman of The Deal LLC.; Robert Pruzan of Centerview Partners; Leon Kalvaria of Citigroup Inc. (NYSE:C); and Nigel Meek of Deutsche Bank AG (NYSE:DB). Citigroup and Deutsche Bank are also serving as corporate brokers. Advisers for Cadbury are UBS (NYSE:UBS), Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS), according to Deal Journal. The Telegraph highlights how fees between the banks might be divided up if a deal is struck: Lazard, the U.S. investment bank advising Kraft, was likely to receive 60pc to 70pc of the commissions paid by Kraft, with the remainder spread among other advisers such as lawyers and accountants, according to an executive at a London investment bank Wall Street bulge-bracket banks UBS, Goldman Sachs and Morgan Stanley, which advise Cadbury, would take the vast majority of the fees paid by British confectionery group. The law firms working on the deal will also get a piece of the pie. Law firms for Kraft are Clifford Chance; Cravath, Swaine & Moore LLP; Gibson, Dunn & Crutcher LLP; and Arnold & Porter LLP. Law firms for Cadbury are Slaughter and May and Shearman & Stearling LLP. - Maria Woehr Also see: How sweet can the offers for Cadbury get? Valuing Cadbury's emerging market presence
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