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The Mergers and Acquisition Wave Hits
There is a wave of mergers & acquisitions hitting Europe and other places. The Leveraged Buyout (LBO) and Mergers and Acquisitions (M & A) frenzy seem to be back with a vengeance. According to Reuters in Dec 2006, equity firms held more than 0 billion, with the prospect of firms being bought out and even going private. This is a big force driving up parts of the stock market, while others continue to collapse. Stocks go up because there is a rumor of a company being the target of an M & A, also known as a Leveraged Buyout (LBO). Private equity firms (that includes I believe, hedge funds) have a lot to spend, and they are doing deals all over the place. The Japanese Yen carry-trade may be winding down, but there is plenty of hot money still out there at relatively low interest rates. The monitoring organization Dealogic is listing over 0 billion in private equity deals for M & A, and a total of .6 trillion in M & A. This is up almost 100 percent over last year. So, there is a tremendous amount of speculation going on, with much fear from the U.S. Treasury Department’s Paulson, and the Federal Reserve of this frenzy or bubble coming to a bad end.
About the Author: Adam Heist is an accomplished writer who
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