Major American lenders have scored some $7.2 billion from the fees associated with the breakup of multinational conglomerate General Electric сompany, FT reported.
Plans of GE to split into three separate businesses cost the company $2.3 billion on mergers and acquisition advice alone, $3.3 billion on fees related to bonds, $800 million on loan fees, and $792 million on equity fees.
Major banks such as JPMorgan, Morgan Stanley, Citi, and Goldman Sachs each gained a net of over $700 million over the period, as GE earlier this week announced a tender offer of $23 billion worth of bonds.
GE declined to comment on the fees paid to investment banks, but noted that it was focused on executing its planned transformation, continuing to cut down its debt, and improving operating performance for sustainable and profitable growth.
GE earlier announced it will separate its businesses into three units — healthcare, energy, and aviation. GE is up 0.48%, JPM up 0.29%, MS up 0.44%, C up 0.34%, and GS up 0.47% premarket.