Warner Chilcott JPMorgan’s bitter medicine

The Warner Chilcott buyout in 2004 was a private equity watershed. A consortium including JP Morgan and Credit Suisse won the bidding for the UK speciality drugs group. But private equity group Texas Pacific, which lost the auction, cried foul. It viewed its loss as another case of investment banks biting the hand that fed them. The resulting outcry forced JP Morgan to weigh up whether it was willing to compete against private equity groups and possibly risk losing a long-term revenue stream of...