After Heinz and Dell, a Merger Boom Fails to Appear

Berkshire Hathaway paid out $23 billion to take over Heinz and has proposed a $24.4 billion buyout of Dell.  Analysts believe that, after a five-year drought, megamergers and buyouts may begin to materialize.  The value of global mergers in March reached only $100 billion, on pace to achieve the lowest monthly total since July 2009.  On the other hand, some on Wall Street think that this was simply a case of Warren Buffet taking advantage of an opportunity.

A lot of speculation has been amidst on Wall Street about numerous companies concerning mergers and buyouts.  Verizon Communications and Vodafone Group, for example, have been discussing a number possibilities from a full merger to a complete takeover of Vodafone.  Global corporations currently have $4 trillion in cash, with equity markets almost reaching a five-year high.  In addition, strong stock prices are an encouraging sign that mergers may pick up in the near future.

Written by: Constantine Kostikas

Source: Businessweek.com

 

 

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