Sullivan wins role in $38bn bidding war

Manhattan leader Sullivan & Cromwell has bagged a plum role advising Vornado Estate Trust as it attempts to trump Blackstone ¹s offer for Equity Office Properties with a $38bn (£19bn) bid the biggest buy-out bid ever tabled.

The firm ¹s vice chairman, Joseph Shenker, is leading the Sullivan team advising Vornado, which is leading a consortium comprising Starwood Capital Group and Walton Street Capital.

Shenker is being assisted by corporate partners Eric Krautheimer, Alan Sinsheimer and Andrew Dietderich.

Wachtell Lipton Rosen & Katz is advising Starwood on the deal, with corporate partners Adam Emmerich, David Silk and James Cole leading the team.

The offer follows Blackstone which called in regular adviser Simpson Thacher & Bartlett tabling a $36bn (£18bn) bid for the Chicago-based Equity Office in November last year.

Sidley Austin advised the target on the initial bid and is understood to have retained its role.

The deal is the latest example of surging buy-out activity in the US, which enjoyed record levels of M&A in 2006.

Headline deals last year included the $33bn (£18bn) buy-out of hospital chain HCA, which saw Bain Capital, Kohlberg Kravis Roberts & Co and Merrill Lynch Global Private Equity club together to fund the acquisition in August.

Simpson Thacher was lead adviser to the buyers on the deal, while Sullivan and Shearman & Sterling also bagged roles.