The world's deal-makers have never had it so good. In 1985 they did more deals than ever before. What's more, they almost doubled the number of $1 billion deals they'd done in 1984.
The biggest deals were done in the US. And biggest of all was the Anglo-Dutch Royal Dutch/Shell Group's buy-out of the minority shareholders in its US subsidiary Shell Oil. Morgan Stanley advised Royal Dutch on that deal, which was worth $5.4 billion.
There were four other $4-billion-plus deals, all between US corporations. Two involved tobacco companies: Philip Morris paid $5.8 billion for General Foods and R.J. Reynolds spent $4.9 billion on Nabisco. First Boston advised Philip Morris; Dillon, Read helped R.J. Reynolds.
Also above the $4 billion mark were the mergers of four hi-tec corporations: Allied's merger with Signal (valued at $4.9 billion) and General Motors' acquisition of Hughes Aircraft ($5.1 billion). Allied was advised by First Boston; General Motors was advised jointly by Salomon and First Boston.
Three US investment banks did 100 or more deals in the US alone. Goldman Sachs topped the list with 119 deals, First Boston was involved in Ill and Shearson Lehman finished with 100.