Andrea Orcel has reportedly lodged a $100 million lawsuit against Santander after the Spanish bank reneged on hiring him as its CEO. The move comes as the former UBS star prepares his next career move.
European dealmaker Andrea Orcel is suing Santander to either fulfill the terms of his contract – effectively, hire him as CEO – or pay him $100 million in damages, Spanish daily «El Confidencial» (in Spanish) reported on Wednesday. The move is the next chapter in the star banker's departure from UBS to take the top spot at the Madrid-based bank, only to see the offer rescinded earlier this year.
The move comes as Orcel attempts to put the pieces of his professional life back together. Until nine months ago, he was on the short-list to succeed UBS CEO Sergio Ermotti. Now, he is out of both his UBS job as well as the job at Santander that he abandoned the Swiss bank for. Orcel is pondering launching his own boutique investment bank, «Bloomberg» reported on Wednesday.
Money on the Table
Where exactly Orcel lands, professionally, matters because he left an estimated 50 million euros ($56 million) in UBS stock awards behind when he left the Zurich-based wealth manager. The 56-year-old claims he and Santander inked a contract ensuring he would be «made whole» on the UBS instruments he would relinquish following the move.
Now, Orcel has reportedly sounded out boutique investment banks and U.S. rivals to UBS over his next move. He has also stretched his feelers out to Silicon Valley technology firms about launching his own shop, «Bloomberg» reported.
Credible UBS Threat
To be clear, Orcel is likely to have to relinquish the pay stowed at UBS, even if he strikes out on his own. Vested instruments such as those awarded to Orcel by the Swiss bank since he took over its investment bank in 2012 are normally tied to non-competing conditions.
As Europe's preeminent adviser to financial institutions on their dealmaking, Orcel would be a credible threat as a rival to UBS (and others) even as a one-man show. The recent parallel is Zaoui & Co, a tiny advisory firm set-up by two brothers which quickly clinched huge mandates like Lafarge Holcim's $50 billion tie-up four years ago.
Mixed Boutique Fortunes
Boutiques founded by senior dealmakers have sprouted up in recent years. Experts say clients value the specific expertise and independence that veterans like Orcel provide, which doesn't come with attempts to peddle other services like financing as well.
Other former deal bigwigs have seen mixed fortunes when striking out on their own: ex-UBS leveraged finance boss Ken Moelis set up a boutique in 2007, and carved out a strong niche in the Middle East. In contrast, ex-Credit Suisse CEO Brady Dougan's efforts to launch an investment bank of the future stalled last year when funding dried up, asfinews.asia reported.
