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M and A

Posted by WARREN MOSLER on September 28th, 2009


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As anticipated, this will be larger than ever as the only way to be protected as a shareholder is to buy the whole company.

And the general risks to being a minority shareholder will keep prices lower than otherwise.

M&A Is Back—And May Bring Big Opportunities for Investors

By Jeff Cox

Sept. 25 (Bloomberg) — After missing in action for much of this year’s stock rally, mergers and acquisitions are making a big comeback.


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One Response to “M and A”

  1. Winslow R. Says:

    Mergers are part of mechanical linkage to boost bank profits yet provide little benefit to the real economy? Treasury/Fed willing to allow almost anything to boost private borrowing?

    ” The study looked at deals done in the merger waves of 2005, 2004, 1998, and 1988.

    For the first phase, researchers studied data from global M&A deals with an inflation-adjusted value of between $400 million and $1.5 billion, tracking performance over the six months after the announcement of each deal. Over that time period, transactions occurring in 2004 outperformed the global Morgan Stanley Capital International (MSCI) index by 7 percent according to the study. By comparison, deals in 1998 underperformed by 3 percent over a similar time frame, while deals that occurred in 1988 fell off by 6 percent.”

    http://www.cfo.com/article.cfm/8399954?f=related&origin=archive

    Reply

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