Thursday, August 16, 2007

Cheaper stocks may trigger mergers

August 14 - The Cincinnati Post - The beating Wall Street suffered this past week might have actually created the perfect conditions to launch its revival - cheaper stock prices can herald a comeback for corporate acquisitions.

Dealmaking has been one of the market's biggest drivers, with some $1.26 trillion worth of acquisitions and private equity transactions announced in the U.S. so far this year. Market watchers believe mergers and acquisitions - particularly by big public companies - might be the catalyst to help get Wall Street back on track after the volatility seen in the past few weeks. Investors have weathered some tough sessions where stocks zigzagged, making triple-digit gains and losses. The Dow Jones industrials rose more than 150 points on Wednesday, then plunged about 400 points on Thursday and fell more than 200 points Friday before closing with a minuscule 31 point loss. Read More.

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