As Rogers Communications' long-delayed takeover of Shaw Communications Inc nears its final hurdle, bankers, lawyers and shareholder advisors are preparing to finally pocket a C$100 million-plus ($75 million) fee from the bitterly contested deal.
Rogers and Shaw estimated in April 2021 that the transaction would cost C$100 million in total fees, but some bankers and lawyers now expect the payout to be higher due to the lengthy court battle. Rogers declined to provide revised figures.
While law firms sometimes negotiate fixed fees on transactions, market participants said such deals would be unlikely on transactions that faced the amount of legal uncertainty of Rogers-Shaw. Back when the deal was launched, it was not known that Rogers would face a more than two-year battle for regulatory approval, racking up lawyer fees, who are paid by the hour.
"Due to the lengthy approval process, the legal teams are likely to take the majority of these fees, which is not typical," said Derek Van der Plaat, a managing director at BDO Canada, M&A and Capital Markets. The Rogers-Shaw deal is expected to be the tenth-largest deal in Canadian history since 1995, according to data from Dealogic.
Law firms Lax O’Sullivan Lisus Gottlieb represented Rogers, while Davies Ward Phillips & Vineberg and Wachtell are lawyers for Shaw.Law firms Goodmans and Torys advised Rogers and its controlling shareholder, while Davies Ward Phillips and Vineberg and Wachtell, Lipton Rosen and Katz represented Shaw. Burnet, Duckworth and Palmer is an independent legal advisor to a special committee of independent directors of Shaw.
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