Welcome to the Over the Top issue of M&A Daily
Apple
Goldman Sachs (GS) is trying to get Apple (AAPL) to make a topping bid for Time Warner (TWX). The current AT&T (T) deal has a $20.02 arb spread offering a 20% IRR if the deal closes by 2018. The timing and risk to the current deal gives alternative suitors room to bid. A suitor with more certainty and a speedier process could get TWX shareholder support with a bid only slightly more than $100 per share.
Goldman is under pressure in the M&A league tables. It is clinging to the narrowest of leads in the US - as of today, they have $479 billion of deals compared to JPMorgan's (JPM) $464 billion. If they could get Apple to come in over the top for Time Warner, they could seriously extend their lead. Meanwhile, confusion between Time Warner and Time…