Photo: Financial Times
Peter Kiernan will be resigning from Lazard at the end of 2011, according to Sky News‘ Mark Kleinman.HR departments, you know what that means. Kiernan is the investment banker who led Kraft’s controversial $19.5 billion hostile takeover of Cadbury. He’s probably still looking for a new job, and with Dodd Frank’s clamp down on most banking activities other than investment banking, M&A activity is one of the remaining areas to make profits in, at least in the U.S.
In the UK that might not be true. Kiernan’s resignation seems prompted by UK regulators’ decision to overhaul M&A regulations. According to Sky News, the new regulations were partly prompted by Kiernan’s controversial Cadbury/Kraft deal.
It says “[new regulations] will include shortening the timetable for predators to bid for their targets, disclosing the identity of offerors at an earlier stage, and banning inducement fees in most situations.”
The fees Lazard (the lead adviser) took were part of $100 million which all advisers on the deal split, according to MarketWatch.
Kiernan’s Cadbury/Kraft deal was controversial in the media mainly because Kraft at first agreed to keep operating a large Cadbury manufacturing plant, and then broke its promise and closed it after the deal was complete. But in Kraft’s defence, it only closed one plant. Workers at other plants had protested because they were concerned that Kraft would close more. It didn’t.
And perhaps he’d be willing to move his career to the U.S. where income taxes (particularly bonuses) are lighter.
Here’s what we know about Kiernan:
- He’s 50
- He graduated from Cambridge
- He’s head of UK investment banking at Lazard
- He trained as an accountant with Peat Marwick at Peat Marwick Mitchell
- He was Director of Goldman’s Investment Banking division
- He joined Goldman in 2000 after 14 years investment banking experience at UBS
- At UBS, he worked on Akzo’s acquisition of Nobel, Anglo American’s purchase of Tarmac, and the KKR’s purchase of the insurer Willis Corroon
- He started at Warburg as a Director, and then when UBS acquired Warburg, he became a Managing Director
- He was all set to be the Director of the UK Takeover Panel, but the Cadbury-Kraft deal screwed it up