Business Insider: Six Investment Banks Lost More Than $200 Mln From Pfizer-Allergan Deal Collapse

A report from Business Insider points out that six investment banks will be missing out in more than $200 million in fees due to the call off of $160 billion merger between Pfizer Inc.PFE and Allergan plc Ordinary Shares AGN. http://www.businessinsider.in/The-largest-drug-company-deal-in-history-has-fallen-apart-and-it-has-smacked-a-bunch-of-hedge-funds/articleshow/51715849.cms Guggenheim Securities, Goldman, Sachs & Co., Centerview Partners and Moelis & Company have advised Pfizer, while J.P. Morgan and Morgan Stanley served as Allergan's financial advisors. The report said investment banks are not the only ones feeling the pain, the buyside is too. "A number of hedge funds (assuming they haven't sold their shares) suffered losses after Allergan's stock dropped 16% on Tuesday following scrutiny from the US government over so-called "tax inversion" deals, which basically allow companies to move their headquarters to another country and benefit from a lower tax rate," the report noted. If the deal happened, Pfizer may have shifted its headquarters from New York to Ireland where Allergan is based. The report showed that ten hedge funds, including Daniel Loeb's Third Point, Paul Singer's Elliot Management and John Paulson's Paulson & Co., "saw 1.33 billion in value wiped off their stake." Shares of Pfizer rose 4.7 percent to $32.83 and Allergan gained 3.23 percent to $244.19.