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The deal struck between Dillon Read and SBC Warburg may seem like a godsend to the smaller firm, whose prestige has often seemed to outdistance its success.
True, even in an era of megafirms, Dillon Read has maintained a long list of Fortune 500 us clients, with its main strength mergers and acquisition advice. But even though Dillon had branched out to reach middle market companies, Dillon's small size was hurting the firm among its longstanding and larger clients. "We were getting marginalized," says a former Dillon banker, noting that those clients were often giving the bigger ticket business to the bulge bracket firms, leaving Dillon with skimpier fees.
Current and former Dillon bankers applaud the deal with the European powerhouse. "We could become the fourth horseman," says one happy Dillon banker, in reference to the slot everybody is angling for - behind bulge bracket firms Merrill Lynch,...