Slaughter and May in line for £2m in fees as private equity consortium targets Shawbrook

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Slaughter and May could receive as much as £2m in fees from challenger bank Shawbrook, if a bid to take over the bank by a consortium jointly owned by Pollen Street Capital and funds advised by BC Partners proves successful.

The magic circle firm is advising the bank in connection with the approach, fielding a team led by corporate partner David Johnson, with Linklaters private equity partner Alex Woodward and corporate partner Ian Wagstaff leading for the buyout firm consortium, Marlin Bidco.

Shawbrook’s independent directors have recommended that shareholders reject the offer valuing the bank at £842m, with the bank warning in a circular earlier this week (2 May) that adviser fees could reach between £9m and £12.5m if the deal were to go ahead, depending on the terms.

The report predicts £2m of this would be spent on legal fees.

Goldman Sachs and Bank of America Merrill Lynch are advising Shawbrook’s board in connection with the takeover bid.

Johnson and corporate partner Susannah Macknay previously led the Slaughters team that advised Shawbrook on its initial public offering in 2015. Slaughters’ US best friend firm Paul Weiss Rifkind Wharton & Garrison advised on US aspects of the flotation.

Slaughters declined to comment.