P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 M&A Titans The Pioneers Who Shaped Wall Street’s Mergers and Acquisitions Industry Brett Cole John Wiley & Sons, Inc. iii P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 ii P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 M&A Titans i P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 ii P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 M&A Titans The Pioneers Who Shaped Wall Street’s Mergers and Acquisitions Industry Brett Cole John Wiley & Sons, Inc. iii P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 Copyright(cid:1)C 2008byBrettCole.Allrightsreserved. PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey. PublishedsimultaneouslyinCanada. Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted inanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning, orotherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStates CopyrightAct,withouteitherthepriorwrittenpermissionofthePublisher,or authorizationthroughpaymentoftheappropriateper-copyfeetotheCopyright ClearanceCenter,Inc.,222RosewoodDrive,Danvers,MA01923,(978)750-8400,fax (978)750-4470,oronthewebatwww.copyright.com.RequeststothePublisherfor permissionshouldbeaddressedtothePermissionsDepartment,JohnWiley&Sons,Inc., 111RiverStreet,Hoboken,NJ07030,(201)748-6011,fax(201)748-6008,oronlineat http://www.wiley.com/go/permissions. LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheir besteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespect totheaccuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimany impliedwarrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymay becreatedorextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceand strategiescontainedhereinmaynotbesuitableforyoursituation.Youshouldconsultwith aprofessionalwhereappropriate.Neitherthepublishernorauthorshallbeliableforany lossofprofitoranyothercommercialdamages,includingbutnotlimitedtospecial, incidental,consequential,orotherdamages. Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,please contactourCustomerCareDepartmentwithintheUnitedStatesat(800)762-2974, outsidetheUnitedStatesat(317)572-3993,orfax(317)572-4002. Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappears inprintmaynotbeavailableinelectronicbooks.FormoreinformationaboutWiley products,visitourwebsiteatwww.wiley.com. LibraryofCongressCataloging-in-PublicationData: Cole,Brett,1965– M&Atitans:thepioneerswhoshapedWallStreet’smergersandacquisitionsindustry/ BrettCole. p. cm. Includesbibliographicalreferencesandindex. ISBN978-0-470-12689-9(cloth) 1.Consolidationandmergerofcorporations—UnitedStates. 2.Investment banking—UnitedStates. 3.Corporations—UnitedStates. I.Title. II.Title:M&A titans. HG4028.M4C65 2008 338.8(cid:2)30973—dc22 2008012005 PrintedintheUnitedStatesofAmerica 10 9 8 7 6 5 4 3 2 1 iv P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 For Bae Young Jo v P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 vi P1:OTE/PGN P2:OTE JWBK210-Cole June13,2008 21:23 Contents Acknowledgments ix The Titans xi Remarks from Some M&A Titans and Players xiii Introduction 1 Chapter 1 Genesis: Wall Street, Its Business and Culture 5 Chapter 2 Godfathers—Flom and Lipton 13 Chapter 3 Seducers—Harris and Rohatyn 23 Chapter 4 Systematizer—Goldman Sachs 31 Chapter 5 Originators—Morgan Stanley 43 Chapter 6 Attack or Defend 53 Chapter 7 An Accountant, Feuds, and the Wasserstein Discovery 67 Chapter 8 The Cult of Greenhill, California 85 vii