Mobileye not working with Goldman, sources say
MergerMarket
Mobileye [NYSE:MBLY] has not engaged Goldman Sachs as a financial advisor following its recent USD 15.3bn deal with Intel [NASDAQ:INTC], according to a source and person familiar with the matter.
Intel announced plans earlier this month to acquire the Israeli-based developer of driverless car camera technology for USD 63.54 per share, a 34% premium to Mobileeye’s closing price before the announcement.
In its deal announcement, Mobileye named Raymond James as its sole financial advisor, a major coup for the middle market-focused investment bank.
The New York Post earlier reported that Mobileye had engaged Goldman Sachs as an additional financial advisor as a thank-you for the investment bank’s past help providing funding to the company. The appointment was made during the past few days, the report said.
However, the source and the person familiar said there is no signed engagement letter between Mobileye and Goldman Sachs. The source said there is no plan to bring on Goldman but cautioned the situation could change.
The Mobileye merger agreement states that Raymond James is the sole investment bank working on the deal and only financial advisor entitled to fees.
Goldman Sachs and Mobileye declined to comment. Intel did not immediately respond to requests for comment.
Mobileye’s merger agreement with Intel does not carry a termination fee in the event a rival bidder emerges, though any alternative proposal must be at least 10% above Intel’s bid. The company’s founders have signed support agreements to back the deal.