KEY POINTS:
The sale of Telecom's directories business has boosted New Zealand's merger and acquisition activity by close to 25 per cent on the same period last year.
The $2.24 billion Yellow Pages deal accounts for nearly 60 per cent of the $3.8 billion changing hands during the top deals
in the year to date, according to figures released by Thomson Financial.
Brynn Gilbertson, a merger and acquisition expert with Bell Gully, said the same quarter last year was also dominated by one big deal - the announcement by Origin Energy it was acquiring the 48.7 per cent in Contact Energy it did not already hold.
"If you did take that deal [Telecom directories] out, it gives you quite a different number but that's not unusual for New Zealand," Gilbertson said.
"I think you do need to look at the overall number, recognising there is one very big deal in there, but overall the number of deals is not too dissimilar."
Gilbertson said the highly competitive sale of the Yellow Pages business indicated strong buying in the market and the continued interest of private equity players.
Thomson figures show private equity firms played a big part in mergers and acquisitions globally during the first quarter, with US$191.8 billion ($266 billion) in announced deals - 17.4 per cent of the overall volume and a 47 per cent increase on this time last year.
"There's certainly no indication that the interest in private equity is slowing down. There is money all over the world being invested in those funds and they are looking for investments for that money," said Gilbertson.
"The level of activity in Australasia is not at the same levels as globallyand the expectation is that we dooperate in a global market and wewill move up to be consistent withthe rest of the world."
New Zealand investment banks collected an estimated $65 million in fees this quarter according to the Thomson Financial report.
UBS banked more than $10 million in fees, mainly for its role in advising Independent Liquor's shareholders in the sale to private equity players Pacific Equity Partners and CCMP Capital Asia.
ABN Amro and Goldman Sachs jointly lead the banking tables for announced deals for advising on the sale of Telecom's Yellow Pages business. New Zealand-based Rank Group's purchase of Swiss group SIG, worth US$2.3 billion, is not included in the tables.
Top Five
* Yellow Pages US$1.6 billion sale to CCMP Capital Asia and Teachers Private Capital.
* HSBC's US$500 million sale of its mortgage book to Kiwibank.
* Telecom's US$274.9 million bid for network company PowerTel.
* Contact Energy's US$105.2 million purchase of Rockgas.
* Southern Capital, formerly Hirequip, US$96.4 million sale to Lynwalsh Holdings - a company associated with Southern Capital directors Stuart McKinlay and Trevor Scott.