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 financial crisis is having a serious impact on low-income countries.
more »
The agreement was welcomed by the EU, which has led efforts to crack down on loose banking practices that caused the financial crisis.
more »
On 31 March this year, the boards of AB Bank SNORAS and AB “Invalda” approved of the purchase and sales transaction of AB “Invalda” financial group's companies.
more »
MEPs will vote on Thursday 2 April on a first reading agreement on the voluntary EU Ecolabel (“EU flower”) system for environment-friendly products to become less costly and bureaucratic to use.
more »
The fourth quarter of 2008 was not so good for the banking industry, and the financial conditions of commercial banks and savings and loans is expected to further deteriorate for the rest of 2009 and the first part of 2010, according to LACE Financial Corp.
more »
MEPs recently gave the green light to a new trade deal between Europe and Caribbean countries.
more »
New VoIP Features Boost Flexibility, Mobility, Cost Savings for Organizations Seeking to Untether Workers.
more »
According to the revised data, in IV quarter 2008, GDP at current prices made LTL 28578.8 million and against IV quarter 2007 decreased by 2.2 per cent.
more »
The EP Fisheries Committee rewrote the rules on recreational fishing in its consultative report, adopted Tuesday, on a proposed “control regulation” to ensure compliance with common fisheries policy (CFP) rules.
more »
In a measure of the Union’s strong growth prior to the financial crisis, the demand for EU trademark rights has shot up in recent years, creating an unexpected budget surplus.
more »