There are many interesting aspects of the ABN Amro (ABN) acquisition, including the current attractive arb spread -- 11% -- and the debate over whether the Home Depot (NYSE:HD) deal price reduction will cause a price cut in the ABN deal -- 3:1 against, hence the spread.
But I'm intrigued today, however, by the number of i-bankers hitching themselves to the company. Apparently 19 investment banks all call themselves advisers guiding ABN Amro to any eventual takeover. 19! That is somewhere between terrifying and appalling, like some sort of greed-centric three-ring circus. You have to love it.
Anyway, quote of the day on the subject goes to someone from a London-based bank:
Increasing the number of advisers doesn't increase the quality of the advice.
Truer words were ne'er spoken. Because the relationship isn't even flat, it's an exponential decline function.