Goldman Sachs 2012 Annual Report Download - page 20

18 Goldman Sachs 2012 Annual Report
Through Goldman Sachs’ efforts,
Daimler receives proceeds of
over $2.1 billion from the ABO.
This cash infusion improves the
company’s ability to focus on its
core business — including, in a very
competitive industry, investment
in research and development.
To enable the sale, France, Germany
and Spain agree to a new ownership
structure that maintains the balance of
interests but reduces the overall stake
the governments hold in the company.
Goldman Sachs helps Daimler place 61.1 million shares with investors
after the preparation of the transaction, which requires the coordination
of numerous different public and private institutions. Though the placement
of Daimler’s EADS shares appears to be structured as a straightforward
ABO transaction, it requires an intricate series of steps tying complex
components together to make the deal a success. Quickly oversubscribed,
the offering closes in less than an hour, with demand especially heavy
in the U.S., Germany and the U.K.
Following the agreement of all relevant parties on the
new governance structure for EADS, Goldman Sachs,
as joint bookrunner, helps to structure and execute the
deal — a block trade of EADS stock known as an
“accelerated bookbuild offering” (ABO).
THE CHALLENGE
AGREEMENT
THE
THE EXECUTION THE SUCCESS
A complex transaction succeeds — and
helps Daimler to focus on its core business.
THE DEAL
61.1M
in shares
From left:
Arne Uekötter
and Axel Höfer
(both Frankfurt),
Investment
Banking Division
Strategy
An automaker navigates
a complex course
150 INVESTORS
6PM 9PM 3AM12AM
OVERNIGHT DEAL
7:15AM
For Daimler to sell half its economic stake in the
European aerospace company EADS, investors must
feel confident about the long-term value of EADS stock.
Issues include a complex governance structure and
the continued interest of the French, German and
Spanish governments.
DAIMLER OUTSIDE
INVESTORS
LAGARDÈRE
GOVT
GOVT
BANK
CONSORTIUM
GERMAN GROUP
FRENCH GROUP
SPAIN
OUTSIDE
INVESTORS
2.1B
$
MONETIZED
Unlocking value