Masters of the deal

By PAUL PANCKHURST

When big corporate deals go down in New Zealand, check for the fingerprints of Scott Perkins, 39, of Deutsche Bank.

Tick off Deutsche's deals this year.

The sale of the National Bank for $6.25 billion - a Halley's Comet of a deal, the biggest in New Zealand corporate history.

Fairfax snapping up INL's newspaper and magazine empire.

Toll Holdings moving on Tranz Rail.

Fletcher Building grabbing Tasman Building Products.

Meridian Energy splashing out on power stations in Victoria.

Deutsche wasn't involved in two of the big deals of the year - sales of the forestry estates of Fletcher Challenge Forests and the Central North Island Forestry Partnership - but it hasn't done badly.

"Deutsche Bank rules ... " said a press release in October from Thomson Financial, listing the bank as No 1 for announced and completed New Zealand deals this year.

The Australian Financial Review says Deutsche is now ensconced alongside Macquarie Bank and UBS at the top of the mergers and acquisitions (M&A) game after a rapid rise through the ranks.

Perkins is a pivotal member of the Deutsche team on both sides of the Tasman.

The one-time Kings College debating team captain is co-head of corporate finance for Australia and New Zealand, running a so-called "seamless team" in Sydney, Melbourne and Auckland.

Former mentors at Fay Richwhite describe Perkins as the complete investment banker - a leader, an analytical thinker, and strong on client relationships.

"Your quintessential M&A investment banker," says one fan.

"If you're looking for the perfect investment banker, he's probably got the package," says another.

Perkins has been in the public eye through the Knowledge Wave project and a spin-off think tank.

His younger brother, Clark - another one-time debating team captain at Kings - is the chief executive of rival firm Goldman Sachs JBWere.

Like Perkins, Deutsche New Zealand chief executive Brett Shepherd is a Fay Richwhite alumnus.

The pair have worked together for more than 10 years at Fay Richwhite, FR Partners, Bankers Trust, and then Deutsche.

A long track record of big deals - Carter Holt Harvey, Kirin, Norske Skog, United Networks - illustrates a depth and breadth of connections with corporate New Zealand.

Shepherd took over as chief executive when Perkins crossed the Tasman in a shake-up of the Australian operation last year.

Rivals see Shepherd as another top talent - "more execution focused", "the safe pair of hands".

He is also that rarity, a Maori investment banker (descent, Hauraki).

But the personal stuff ends there.

Interviewing the pair at Deutsche's designer-sleek Auckland offices, the Business Herald asks about birthplaces, ages, interests.

"Uh-uh," says Perkins. "We don't do that kind of stuff."

The implication is that it is embarrassing, unprofessional.

"No-one knows where I come from," jokes Shepherd.

"That's right," says Perkins. "They're still trying to trace the genealogy."

Laughter.

Deflector shields go back in place.

So, back to the individual deals and their complexities.

A surprise to the uninitiated is the small size of the investment banking teams on some big deals.

Deutsche has 10 corporate finance staff in New Zealand and 100 in Australia.

Eight worked on the National Bank deal, four on Toll Holdings' play for Tranz Rail.

On the individual deals ... was it a surprise that news did not leak of ANZ chief executive John McFarlane's trip to Wellington for a secret meeting with National Bank head John Anderson?

"It's amazing what a chartered corporate jet can do," laughs Perkins.

He rejects rivals' suggestions that the Australian and New Zealand offices of Deutsche cannot claim much of the credit for securing approval for the sale from Lloyds TSB in Britain.

Local knowledge was crucial, he says.

"I think we pitched the idea in a differentiated way - we didn't just line up with the idea that now is a great time to sell the National Bank.

"And we had some genuine insights into how the process might evolve, how the bidders would behave, what the various divestment options were.

"And you could only have that insight from having two things - people in New Zealand with real depth of local market knowledge, and sector expertise on financial institutions."

Sydney-based John Fairfax Holdings' purchase of INL's publishing assets, including the Sunday Star Times, Sunday News, Dominion Post, and the Christchurch Press, stands out as example of an idea created and nurtured by Deutsche.

Rupert Murdoch's News Corporation is the largest shareholder in INL.

Said Perkins: "It was an idea that we originated, that we took to Fairfax, and then managed to convince News that it had merit for them as well."

The idea popped up more than three years before the "shock announcement" in April that a deal was being done.

Toll Holdings' bid for Tranz Rail stood out for the potential political complications - including a sometimes hostile Finance Minister.

For Deutsche, Fletcher Building's $260 million purchase of Tasman Building Products was all about mastering detail - understanding the five businesses with five reporting lines within Tasman.

Looking wider, Perkins says: "The last 12 months have been an incredibly strong period of trans-Tasman investment - a lot of two-way traffic."

He expects more of that.

On the outlook for mergers and acquisitions next year: "Deal volumes will be up. Global capital markets are recovering. Global economies are recovering and chief executives are getting into the mindset where they are prepared to address the big strategic issues that they've had on ice for a couple of years."

On the outlook for Deutsche Downunder: "Whether we can get a $6.25 billion deal next year ... we're hopeful."