Boosted by America Online_s mega-offer for Time Warner, corporate merger activity is off to a fast start this year in dollar terms.
Published:
3 April 2000 y., Monday
Yet deal activity overall is running at the slowest pace since 1995. Through Tuesday, 2,270 mergers involving U.S. companies have been announced this year with a dollar value of $537 billion, according to Thomson Financial Securities Data.
The dollar total is already the strongest for any first quarter and is the second-biggest overall, after the $677 billion of deals announced in the second quarter of 1998. But the number of deals is the lowest for any quarter since the second quarter of 1995. Since peaking at 3,409 announced deals in the third quarter of 1998, the quarterly totals have declined fairly steadily. But if the dwindling number of obvious bargains means potential buyers are finding less to buy, the deals are bigger than ever. The average size of deals announced in the first quarter is $236 million, or $156 million not including AOL-Time Warner. That compares with an average size of $155 million for all of 1999 and $134 million in 1998. As in the case of AOL-Time Warner, most mergers are stock-for-stock transactions. Deals using cash as payment have accounted for only 24 percent of the value of deals announced this quarter. By contrast, 10 years ago cash deals and stock deals were split nearly evenly.
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
The EBRD is making a €4 million equity investment in Geofoto, a Croatian geodetic company offering mapping, geodetic survey, photogrammetry, geoinformatics and aerial survey services, to support its drive to expand operations on international level.
more »
Nordea came out of 2009 in an even stronger position, despite one of the most challenging years for decades. Risk-adjusted profit increased 22% and our capital position and cost of funding are among the best in Europe.
more »
MEPs gave the green light on Thursday for EU funding to help Europe's unemployed start up small businesses.
more »
MEPs are deeply concerned about the long-standing and growing presence of al-Qaeda, and the deteriorating security, social and economic problems in Yemen, which they think could destabilise neighbouring countries.
more »
At the start of a new decade, Sub Saharan Africa is reeling from the effects of three major global crises – food, fuel and financial – that have reversed many of the economic achievements of the last 10 years and left some growth projections at levels below those of 30 years ago.
more »
The 5th High-level Seminar of Central Banks in the East Asia-Pacific Region and the Euro Area was jointly organised by the European Central Bank and the Reserve Bank of Australia, in cooperation with the Hong Kong Monetary Authority.
more »
The EBRD and European Fund for Southeast Europe are boosting the availability of financing to private businesses in Moldova with a $10 million loan to ProCredit Bank in Moldova for on-lending to micro and small enterprises.
more »
The EBRD is supporting the development of the retail infrastructure in Croatia with a €68 million loan to finance the construction of a modern shopping centre in Split, the second largest city in Croatia.
more »
The European Bank for Reconstruction and Development has agreed to sell its 15 percent stake in OAO Swedbank Russia to its parent and major stakeholder, Sweden’s Swedbank AB, a move which would give it full ownership of its Russian subsidiary.
more »
The Ministers of Industry took the first steps in San Sebastián today to make the electric vehicle a reality in Europe and agreed that European institutions, with the EC at the head, should lead a common strategy on electric vehicles.
more »