Intel Taps Goldman As M&A Adviser For First Time In McAfee Deal

Apparently Goldman Sachs Group Inc. (GS) hasn't lost its touch at landing the big client.

Intel Corp. (INTC) hired Goldman Sachs, which has been the target of much public ire since the financial crisis, to advise it on its $7.7 billion bid for McAfee Inc. (MFE), disclosed Thursday morning.

While Goldman has advised other technology heavyweights on past transactions, this is the first time Goldman has been disclosed as an M&A adviser to Intel, according to data provider Dealogic.

The relationship underscores the investment bank's ability to attract major clients in its key businesses despite the black eye it received from a $550 million settlement with regulators.

Last month, Goldman settled a civil fraud complaint filed by the U.S. Securities and Exchange Commission alleging that the firm didn't disclose the role of hedge fund Paulson & Co. to investors in a complex mortgage transaction called Abacus 2007-AC1.

Goldman executives, including Chairman and Chief Executive Lloyd Blankfein, have said the majority of clients remain loyal to the firm, though they acknowledge being unable to quantify any potential loss of business from the public and political scrutiny.

In this case, Goldman is showing it hasn't lost its luster for gaining notable new clients in its M&A advisory business.

According to Dealogic, Intel previously turned to Bank of America Merrill Lynch (BAC) as an adviser when making acquisitions. Dealogic said Bank of America Merrill Lynch previously advised on three announced transactions valued at a combined $3.4 billion.

This year, Goldman ranks first among global and U.S. M&A advisory firms, with 199 and 114 announced deals valued at $371.2 billion and $183.7 billion respectively, Dealogic said.

On the other side of the deal, McAfee used Goldman Sachs rival Morgan Stanley (MS) as an adviser. Previously, McAfee has sought M&A advice from Morgan Stanley four times in deals with a combined value of $2.4 billion, Dealogic data show.

Representatives for Intel and McAfee declined to comment for this story. Bank of America didn't immediately respond to a request for comment.

-By Brett Philbin, Dow Jones Newswires; 212-416-2173; brett.philbin@dowjones.com

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