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