Morgan Stanley seen reaping up to $100 million after Cigna deal

NEW YORK: Morgan Stanley is benefiting from merger mania this year.

The New York-based bank may collect $80 million to $100 million for its work as the sole banker to Cigna Corp. on its agreement to buy Express Scripts Holding Co., according to Jeff Nassof of advisory firm Freeman & Co. Valued at $69.6 billion, the deal was announced Thursday. It is largest acquisition of the year and the biggest on record for the insurer.

Blair Effron’s Centerview Partners and Lazard Ltd. may split another $100 million for advising Express Scripts, Nassof said. Cigna has secured financing from Morgan Stanley and the Bank of Tokyo-Mitsubishi UFJ Ltd., according to a statement from the insurer.

Morgan Stanley has jumped to No. 1 on mergers and acquisitions league tables this year. The bank was also an adviser to XL Group Ltd. on the $15.3 billion agreement to be sold to French insurer Axa SA.