Perella Weinberg Partners and Piper Sandler have abandoned merger talks that would have combined two of Wall Street’s major independent investment banks. The advisory firms had been discussing an all-stock merger but could not agree on key financial and personnel matters, according to people familiar with the matter. Shares in Perella Weinberg dropped 19 per cent after the FT reported the talks had collapsed.
The Wall Street Journal first reported on the possible combination last month, sending its shares soaring. In recent weeks, the two firms had been trying to hash out lock-up agreements to retain dozens of top Perella Weinberg bankers at the combined entity, the people said. However, a critical mass of Perella Weinberg’s top talent did not get on board with the deal, undermining Piper’s confidence that it was worth joining forces, they added.
The merger discussions come amid a wave of consolidation in the boutique advisory sector as companies grapple with succession challenges and fierce competition from bulge-bracket banks such as Goldman Sachs and Morgan Stanley. Piper declined to comment. Perella Weinberg did not immediately respond to a request for comment.
Perella Weinberg, founded in 2006, has a market capitalisation of roughly $1.2bn. Piper Sandler, which itself was formed from a combination of Piper Jaffray and Sandler O’Neill + Partners, has an equity value of about $5bn.
Source: Financial Times Companies · Summarized by HeadlinesBriefing