Piper Sandler, Perella Weinberg End Merger Talks

Piper Sandler and Perella Weinberg ended talks over an all-stock merger after failing to agree on financial terms and senior-banker lock-up arrangements, the Financial Times reported, citing unidentified sources. The proposed combination would have created a firm with combined market capitalization of about $6 billion, pairing Piper Sandler’s roughly $5 billion equity value with Perella Weinberg’s market capitalization of just over $1 billion. The firms sought multi-year lock-up agreements for dozens of top Perella Weinberg bankers, but an insufficient number agreed. That resistance was central to the impasse. The breakdown reversed sharp gains Perella shares had made when the potential combination was first reported the prior month. Piper Sandler was formed more than six years ago through the combination of Piper Jaffray Cos. and Sandler O’Neill & Partners LP. finimize.com reported Perella Weinberg shares closed down 19.1% at $13 while Piper Sandler rose 0.96% to $64.50. Seeking Alpha reported Perella sank 21% and Piper edged higher. Both firms remain independent after the talks ended.