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
Bank DnB NORD A/S increasing its holdings in its Lithuanian subsidiary to 99.84 percent through acquisition of shares from minority shareholders.
more »
AB Bank SNORAS will grant LTL 35 million for financing the small and medium businesses on the exclusive conditions.
more »
Rejecting survival plans from both General Motors and Chrysler, President Barack Obama warned the ailing US automakers they could be forced into bankruptcy if they don't find a way to slash their debt.
more »
Prevailing wisdom says when the going gets tough the weary go drinking. The demand for beer exceeds the demand for all other alcoholic beverages in USA.
more »
Things have been moving slowly for Swiss watchmakers in recent months. The global economic downturn has hit the country's third most important industry hard.
more »
The move came a day before the U.S. government was due to outline new steps to help GM and Chrysler as part of the federal bailout.
more »
With the European year of creativity and innovation in full swing, leading figures warn against cutting back on research and development in times of crisis.
more »
Wall Street has been looking for signs of a bullish comeback, and today's surprise news on the economic front revived a buying spree... started by Monday's 7% rally.
more »
With the economic crisis eating away at public finances, budget deficits in five countries are expected to exceed the 3% of gross domestic product allowed by the EU.
more »
China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis.
more »