M&A market may cool down with capital supply getting squeezed

September 13 - The Economic Times (India) - Mergers and Acquisitions market might cool down with supply of capital drying up in the context of increasing credit defaults and private equity (PE) activity about to peak, the Boston Consulting Group said.

"One of the factor not in favour of increased M&A in the light of the unfolding subprime crisis was that an increase in corporate defaults could reduce the amount of capital available to prospective acquirers," BCG's global study on M&A said. Read More.

Private equity is in pause mode, Leech says

September 12 - The Globe & Mail (Canada) - Private equity buyers are adapting to the pricier debt market and there appear to be few people walking away from deals, said Jim Leech, who will take on the chief executive officer role at the Ontario Teachers' Pension Plan on Dec. 1.

Volatility in the credit sector sparked by defaults on high-risk mortgage loans in the United States has dampened the private equity market, but "this is a pause, not a conclusion," Mr. Leech, currently senior vice-president of Teachers' Private Capital, said in a speech in Toronto yesterday. Read More.

Bubble Energy?

September 11 - Forbes - Talk of an alternative energy "bubble" started percolating in the trade and cyber-press over the past several months. The fact is, the staid Dow Jones industrial average has done as well or better than most alternative energy indexes. So, hot, or not? Since global energy demand is rising unabated, the core question is, How big a piece can alternatives capture?

According to (some) wizards at Harvard, "Solar could meet one-fifth of U.S. energy needs within two decades." At least that's what they said 30 years ago in the widely acclaimed book Energy Future. What happened? If you count as solar both the obvious solar and indirect solar sources such as wind, wood, corn, geothermal and the like, America today hit a collective 4%, or one-twenty-fifth share. Read More.

Private equity eyes UK property funding role

September 6 - Reuters (London) - Private equity smells an opportunity in UK commercial property. Prices are falling, but developers cannot get the funds to buy bargains because lenders rocked by the subprime crisis are running shy of the sector.

Unlike the vulture funds of the 1990s though, these opportunists are not planning hostile takeovers of property firms paralysed by a lack of credit.

Instead, private equity sees itself as "white knight", offering its own cash for funding should the need arise, with a view to a more traditional debt refinancing when banks' appetite for lending returns. Read More.

Flurry of deals carves up a Canadian industry

With foreign players knocking, energy executives say there's still a place for independents

September 10 - The Globe & Mail (Canada) - Canada's nascent wind power business has caught the attention of foreign players, who have been steadily buying up domestic companies as the industry consolidates into fewer and fewer hands.

While more buyouts are expected, wind energy executives say there is still room for small independent wind developers in an industry that is finding its feet in a burgeoning market for alternative energy sources.

This summer, two very different foreign players grabbed a foothold in the Canadian wind business. In June, U.S. investment bank Lehman Brothers bought a big stake in private Toronto wind and solar power developer SkyPower Corp. for an undisclosed sum. Read More.

M&A Hiring Shows Life Despite Leery Outlook

September 10 - WSJ - European banks and other financial institutions plan to hire more merger-and-acquisition staff, even though there has been a sharp jump in the percentage that think a bursting loan bubble poses the greatest threat to deals in the next year, according to a survey by IntraLinks M&A Monitor, in association with Financial News.

A poll of 348 banks, corporations, legal firms, and private-equity businesses conducted as the worst of the credit crisis was unfolding this summer found that 84% were seeking to hire staff, marking a sharp increase from 69% in April and 75% a year ago. The optimism was highest in Germany, where more than 90% of respondents said they expected to recruit additional personnel, the study found. Read More.

Wall Street Beat: M&A, VC funding stay hot

Cognos, Yahoo, and Oracle are among the companies making acquisition announcements

Merger and acquisition news from companies as diverse as Yahoo, Cognos, and MetroPCS Communications heated up IT investor interest this week, shoring up confidence in the sector even as credit-market concerns continued to buffet the stock exchanges.

After wireless carrier MetroPCS proposed a merger valued at about $5.5 billion with rival Leap Wireless, its share price Tuesday spiked $1.36 to close at $28.65. Brokerage Jefferies & Co. Wednesday then upgraded its rating on the stock from "hold" to "buy," sparking another uptick in the company's share price. Though the merged company would have about 6.2 million customers, a far cry from the 50 million-plus subscriber base that market leaders like AT&T and Verizon have, the combined company would be the fifth largest in the U.S., with a national footprint. Read More.

Mergers can survive without private equity: Rubin

September 7 - Financial Post (Canada) - If mergers and acquisitions are going to continue to drive stocks higher, forget about getting much of a boost from private equity buyout firms.

These firms had been playing an increasingly important role during the buyout boom earlier this year and were involved in big deals, like the takeover of Bell Canada Inc. and Chrysler. Now, though, they appear to be withdrawing from the market.

According to Jeff Rubin, chief economist and chief strategist at CIBC World Markets, global private equity deals hit a peak of about US$150-billion in May, but then declined substantially in June and again in July. In Mr. Rubin's words, they then fell off a cliff: In August, there were just US$17.8-billion of private equity deals, a tiny fraction of their former glory. Read More.

BMO Capital Markets Releases Annual M&A Report on the North American Transportation Industry

M&A activity remained strong in 2006 and deal volume is expected to continue but may be slower in the short-term due to current credit market conditions

September 6 - CNN Money - The two-volume report provides an in-depth review of mergers and acquisitions and corporate finance activity among Transportation Industry Service Providers and Transportation Equipment Manufacturers. The report also looks at the level of M&A activity in various sub-sectors, including active strategic and financial acquirers and a summary of financial parameters, including valuation metrics.

"Overall, the M&A activity in the transportation industry remained strong in 2006 with a total number of 253 transactions being announced," said Paul Hawkinson, Managing Director and Head of BMO Capital Markets' Commercial & Industrial Sector Group. "The volume of activity was driven by several secular trends including the continued outsourcing of transportation activities by corporations and the off-shoring of manufacturing activity as corporations moved to lower costs." Read More.

Deals Boom Fizzles As Cheap Credit Fades

September 6 - WSJ - The global mergers-and-acquisition boom that began in 2003, the greatest deal frenzy in history, is winding down.

This summer's crisis of confidence has choked off the easy credit that fueled buyouts for years, abruptly altering the psychology of the deal market. Through June, M&A activity, as measured by total transaction values, had been running at its highest annual rate ever and was on pace to generate the deepest pool of investment-banking fees.

But within weeks, the market began to run out of steam. In August, there were about $222 billion worth of deals around the globe, according to market research firm Dealogic, the lowest monthly total since July 2005, and a far cry from the $695 billion figure struck in April and the $579 billion in July. Read More.

Dissident investor wins 3 H&R Block board seats

September 6 - Reuters - Activist investor Richard Breeden has won three seats on H&R Block's board, advancing his effort to push the company to focus on tax preparation and quit businesses such as banking and mortgage lending.

The slate proposed by Breeden, a former Securities and Exchange Commission chairman, was victorious based on a preliminary count of shareholder votes, H&R Block said Thursday at its annual meeting in Kansas City, Missouri.

Since late June, Breeden had campaigned for seats on H&R Block's 11-member board, and had won the support of the three major U.S. proxy advisory firms. He won seats for himself and two associates: Robert Gerard, a former assistant U.S. Treasury secretary; and L. Edward Shaw. Read More.

UK and global M&A set new record - and open to new players

September 5 - Finance Week - Acquisitions by, and of, UK companies both jumped in the second quarter; but this may have featured the final flourish for big, leveraged private equity deals. While raising loans for M&A has got a lot harder in Q3, the global boom is set to continue – but with new trade players leaping on devalued stocks, especially in the US.

British companies stepped up their overseas M&A activity in Q2, but also became more frequent targets for foreign acquirers, according to figures released yesterday by the Office of National Statistics. Foreign acquisitions by UK-based firms totalled £16.9bn in Q2, four times the Q1 expenditure and three times the amount in Q2 last year. Acquisitions of UK firms from abroad reached a new record of just under £50bn, nine times the Q1 figure and more than 2.5 times that of Q2 2006. Read More.

ACG/Grant Thornton: U.S. Middle Market Corporate Executives and M&A Professionals Target More Cross-Border Deals

Dealmakers Search for Geographic Diversification, Access to New Markets, and Greater Efficiencies

69% Bullish About Cross-Border M&A 92% Say Deals Met Objectives; 58% Say Took Longer than Expected

September 4 - ACG - U.S. mid-market corporate executives and merger professionals are looking to aggressively target cross-border acquisitions in the next 12 months, according to a survey of more than 200 U.S. active representatives of middle-market companies, investment banks, private equity firms, law firms, accountants and consultants by ACG (Association for Corporate Growth), Grant Thornton LLP, and Eureka Private Equity.

The survey found that nearly three-quarters (72%) of respondents have been involved in cross-border M&A, and, almost as many, 70% anticipate doing at least one cross-border deal in the next 12 months. Most are bullish on the current environment for cross-border M&A, with 69% saying the current environment is good, and 31% calling it fair. Read More.

M&A robust for tech sector

August 31 - Small Business Times - Merger and acquisition activity within the technologies service sector is robust, with strategic
buyers targeting companies that provide help desk, data center, hosting, outsourced IT departments and other services.

Strategic buyers are more active in the IT sector than private equity investors.

“The big difference is that in IT, it’s virtually all strategic buyers,” said Victoria Fox, managing director with Emory & Co., a Milwaukee-based investment banking firm. “There is really not a big private equity interest.”

Strategic buyers generally look for two things in the IT service sector – geographic location or an add-on offering they do not currently provide. Many IT service providers are trying to have as many offerings as they can for clients, making niche providers especially attractive. Read More.

Field leveling for M&A players

August 30 - TwinCities.com - Not everyone is stressed about the credit crunch. Reid MacDonald might even go so far as to say he's a little excited about it.

The CEO of Minneapolis-based Faribault Foods says he thinks small companies like his that are looking to make acquisitions will benefit from the new credit environment because they'll be better able to compete for deals.

As lenders pull back on financing, the private-equity firms that have been snapping up companies at record prices could be forced to pull back on highly leveraged deals. As they do so, the prices they pay for their acquisitions likely will come down, finance experts say.

That's good news for strategic buyers like Faribault Foods, which has been outbid by private-equity firms on at least a handful of deals in recent years. Read More.

Mergers Could Ignite Airline Stocks

August 28 - Forbes - Could the airline sector be taking off soon?

With key players in the industry looking to consolidate, the fall may bring traders' money and headlines to an industry dogged by high fuel prices.

Although he does not believe any deals are imminent, Calyon Securities analyst Ray Neidl said in a research note that the market may start to factor merger considerations into stock prices. Read More.

Canadian mergers hit record, but may have peaked

August 29 - Reuters - The value of mergers and acquisitions involving Canadian companies surged to a record in the second quarter, data showed on Wednesday, but that could be the peak of a year-long buyout binge.

Companies announced transactions worth C$202 billion ($191 billion) in the quarter, more than double the previous record of C$89 billion set in the third quarter of 2006, according to joint Financial Post and Crosbie & Co. data.

Even without the boost from two blockbuster transactions -- the announced buyouts of telecommunications group BCE Inc and aluminum producer Alcan Inc. -- the three-month period to June 30 would still have been a record. Read More.

CFOs see private-equity activity increasing: survey

Execs expect buyout binge to continue, but others say deals will be smaller

August 28 - MarketWatch.com - A survey released Tuesday of more than 100 chief financial officers found that 75% of them expect the number of companies seeking private equity to increase in the next 12 months.

But others aren't so sure. "I'd be very surprised if private-equity activity picked up at this point," said Jon White, president at Beacon Hill Financial in Orlando, Fla. "The credit crunch is making deals much more expensive. We're probably looking more at moving toward historic long-term averages where private equity deals number a lot less and involve substantially less money."

None of the CFOs expect private-equity activity to decline in the coming year, according to the survey conducted by Tatum LLC. Another 25% forecast some leveling off, according to the Atlanta-based strategic planning firm. Read More.

Private equity lessons

August 27 - Financial Times - Runaway booms always mask a raft of questionable activities. The buy-out frenzy was no exception. Problems being exposed by the credit market crunch go beyond the exuberant funding promises that the banks now regret. Home Depot’s renegotiation underlines a few of them.

First, there is “stapled finance”. The idea was that banks advising on a sale would also offer financing terms to potential buyers to lubricate the process. That created a conflict of interest by positioning the bank alongside both buyer and seller. In Home Depot’s case, Lehman Brothers advised on selling the supply division, helped provide the financing and then, when the deal looked tenuous, helped to force a renegotiation and price cut. At that point, it was removed as an adviser. But it should never have been on both sides. In a tight spot, the interests of its shareholders were always going to come above Home Depot’s. Read More (subscription required).

Alternative Energy: Can It Compete?

August 27 - Seeking Alpha - It's no secret that alternative energy is an emerging market with enormous potential for growth; fossil fuel depletion, political volatility in oil producing nations, and the effects of greenhouse gasses have become pressing issues for many in recent years. But for all the hype, the question remains: Can it compete?

The dig against alternative energy has always been costs. Yes, solar power is nice, but if it costs 10X more than burning oil, we'll stick with our dinosaur fuels.

Technological advancements over the past few years, however, have significantly decreased production costs. With rising prices for fossil fuels, solar power, wind power, hydropower, bio-diesel, and ethanol have seen tremendous growth. Thanks to increased cost efficiency, alternative energy sources have caught the eyes of many governments and energy producing companies across the globe, which are throwing increasing amounts of money at the concept. Is this money over the bridge, or have alternative energy sources turned the corner to become cost effective? Read More.

Capgemini says 28.5 pct of US executives mulling mergers to keep market position

August 23 - Thomson Financial - IT services company Capgemini said 28.5 pct of US executives it surveyed are considering mergers and acquisitions as a way to maintain or increase their companies' global market position in the next three years.

Capgemini said it comes amid a broad lack of confidence that sales can rise enough to achieve this goal with existing resources.

It said 38.3 pct of the executives are considering greater capital investments and 32 pct are thinking of adding jobs.

Other options being considered by at least 32 pct of the executives are improving company practices outside of production, more training and outsourcing some functions.

Developers a-callin' on private-equity firm

August 23 - IndyStar.com - The subprime mortgage collapse. Shrinking credit. Stock market angst.

For many investors and real estate developers, the news lately hasn't been good. But for others, including private-equity firms such as D.W. Funke Investments, the housing market's losses have been their gain.

"We are in high-growth mode," said David W. Funke, president and chief executive of the Carmel-based investment company.

"Because of what's happening with the subprime collapse and the shaking up of the capital markets, generally all we have to do is respond to the phone calls coming in" from commercial real estate brokers, bankers and developers, he said. Read More.

Private Equity Firms Are Vital Components in Today’s Global Economy

August 22 - New Age Media Concepts - Gone are the days of true corporate raider, where companies were torn apart and sold off to the highest bidder. The misconception in today’s market place by investors, not institutional investors mind you but individual investors, is that when a Private Equity Firm takes over a public company that the corporate raider mentality comes into play. This is far from the truth actually.

Private Equity firms, as it relates to public companies, add true value through restructuring. Keep in mind that when a public company does anything dramatic that could temporarily reduce a company’s earnings or asset base, the street is unforgiving. Its this fear that actually puts a blockade in place and prevents most public companies from doing what a private equity firm is already geared up to do, and that is reduce the fat, build a strong sound foundation and add true growth to the company. Read More.

Private Equity, Public Gain

Let's lay to rest the myths about private equity, once and for all. There's no question PE is a boon to society

August 21 - Business Week - Recent turmoil in credit markets and hedge fund losses, along with the public offering of the Blackstone Group, have reignited controversies over the growing power of private equity. Critics call private equity outfits such as Blackstone the new robber barons, ready to plunder great corporations and leave them in a shambles.

Nothing could be further from the truth. The dynamic leadership of private equity is providing great benefits to corporations, the economy, and society.

Let's take a closer look at some myths about private equity: Read More.

The Right Stuff

August 21 - ThomasNet Industrial Newsroom - Apathy, budget cuts and growing global competition ... despite a number of concerns, the worldwide aerospace and defense market is on track to grow by more than 19 percent by 2011.

And “as airline profitability improves, OEMs steadily raise delivery schedules and supply chain businesses see strong levels of shipments to Airbus and Boeing,” the outlook for the A&D sector “remains extremely attractive thus far in 2007,” investment firm RSM EquiCo Capital Markets noted in April.

Meanwhile, merger and acquisition activity in the A&D sector continues to rise, as "strategic and financial players gain confidence in the long-term stability of the commercial build-cycle and bipartisan defense spending,” according to RSM EquiCo’s Q2 Aerospace & Defense Review. Read More.

Deals still flowing for mid-market buyout firms

August 20 - Crain's Cleveland Business - A focus on smaller deals has helped insulate Northeast Ohio’s private equity firms from a sudden chill in buyout activity felt at the high end of the acquisition market.

Officials at these middle-market buyout firms, which specialize in acquiring companies with $500 million or less in annual revenue, report healthy deal pipelines. Their ongoing flow of deals contrasts sharply with the recent drying up of transactions involving big buyout firms that as late as this spring routinely were pulling off billion-dollar deals, such as the $7.4 billion acquisition announced in May of a controlling interest in automaker Chrysler Group by Cerberus Capital Management.

“So far, from what we’ve seen, there hasn’t been any appreciable slowdown in the activity of our clients, which are middle-market buyout funds,” said Ira Kaplan, associate managing partner and chairman of the private equity group at Cleveland law firm Benesch, Friedlander, Coplan & Aronoff LLP. Read More.

Why buyer's won't walk in private equity's world's changed circumstances

August 21 - Blogging Buyouts - For the past few years, things have been nearly perfect for the private equity world. Credit was cheap and public companies were certainly willing to go private.

But, of course, things are much different now. In fact, there is some doubt that mega deals -- such as for TXU Corp. and SLM Corp. - may not get done because of the tough credit environment.

However, can buyers legally walk from a deal?

Not very easily, actually. After all, when a buyer signs a merger agreement, it's an enforceable contract. And, if it is breached, the consequences can be severe. In fact, in some cases, the buyer may be required to complete the deal. The New York Times looks at this issue in depth today. Read More.

Chemical M&As "maintaining momentum": report

August 17 - Canada Plastics - Merger and acquisition activity has maintained strong momentum during the first half of 2007, according to the new quarterly Chemical Compounds report by PricewaterhouseCoopers. The report found that Western Europe still maintains the highest deal value, but a larger number of deals are occurring in North America.

Overall, in terms of value, 2007 outpaced the first half of 2006 due to the large value of "mega-deals," the report noted. Read More.

Private equity still drawing big investors

August 15 - CNN Money - Amid the freeze on private equity deals, big investors like pension funds and college endowments are still plowing money into buyout funds, suggesting they still see opportunities for outsized returns.

Buyout funds have already raised $139 billion globally so far this year and are on pace to exceed the $212 billion raised in 2006, according to London-based research house Private Equity Intelligence.

Another record year of fundraising comes just as the buyout boom has come to a grinding halt. A push back in the debt markets that began in late June has erupted into a full-blown credit crunch, with financing for leveraged buyouts now at a standstill. Read More.

Private Equity Party Not Pooped In Europe

August 16 - Forbes - The wisest investors are sometimes those who refuse to follow the crowd, and the big guns of private equity are hoping the credit crunch hasn't put off any European buyout fans. As of Thursday, Apax Partners, Kohlberg Kravis Roberts and France's PAI are all looking for over $10 billion each to fund their future conquests of Europe.

According to data from London-based research firm Private Equity Intelligence released Thursday, Apax Partners is raising 10 billion euros ($13.4 billion) for its Europe VII fund, while former BNP Paribas subsidiary PAI partners is also looking for the same amount for its Europe V fund. These are the top two European buyout funds on the market according to target size. Read More.

Nanotech’s Impact on Cleantech Growing Rapidly

August 16 - Business Wire - With the fevered search for new clean technologies, attention is turning to nanotech’s potential in energy and environmental innovation. Nanotechnology’s impact on cleantech is growing, and happens both through product and process innovations, with each type of impact posing its own set of challenges, according to a new report titled “Nanotech’s Impact on Energy and Environmental Technologies” available exclusively to Lux Research clients.

“The rapid increase in nano-enabled cleantech patents and publications relative to overall cleantech numbers indicates that nanotechnology’s impact on cleantech, though small at present, is growing at a fast clip,” said the report’s lead Lux Research analyst Jaideep Raje. “However, the near-term cleantech applications of nanotechnology are likely to come in more mundane forms like catalysts, coatings, and additives – not through big-ticket applications like next-generation photovoltaics.” Read More.

New BCG Study Identifies Major Trends That Will Continue to Drive M&A Through Volatile Financial Markets

Despite Near-Term Slowdown in Deal Making, Most Sectors Expected to Keep Consolidating as Private Equity Firms Remain Influential Players

Report Shatters Several M&A Myths and Sheds Light on Keys to Success in Increasingly Tough Market

August 15 - Marketwire - One of the largest-ever studies of mergers and acquisitions, conducted by The Boston Consulting Group (BCG), identifies several trends that will continue to drive high deal flow, albeit at a reduced rate, through current volatility in the global financial markets.

The study, published in a new BCG report entitled "The Brave New World of M&A: How to Create Value from Mergers and Acquisitions," is based on a detailed analysis of more than 4,000 completed deals between 1992 and 2006. It is believed to be the largest nonacademic study of its kind.

"We are seeing a return to normalcy, which is healthy," said Jeff Gell, a Chicago-based partner and coauthor of the report, upon its release. "Prices and leverage will come down slightly, but volumes will remain high as the strategic need for most deals is still present. Companies are still sitting on excess cash that they need to deploy, and private equity funds still have large war chests that they need to put to work."

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.

Canada: Private equity buyouts hit record levels

August 15 - National Post - The value of private equity buyouts in Canada for the first half of the year has already far exceeded the value for all of 2006, the Canadian Venture Capital Association said Wednesday.

In the first six months of 2007, 96 Canadian buyout transactions were announced with a value of $61-billion -- $13.8-billion of which was outside the record-breaking $47.2-billion Bell Canada buyout, the CVCA said.

That compares to 101 buyouts valued at $11.6-billion in all of 2006, it added. Read More.

Small cement firms may hog limelight

August 16 - The Economic Times - Shares of smaller cement companies are likely to be back in focus led by attractive valuations, firming product prices and likelihood of mergers and acquisitions (M&A) in the sector, according to investment bank CLSA Asia-Pacific Markets.

Though the cement industry is likely to see some news flow, both positive and negative, over the next three months, positive events may be the winner in the near term, which will bring smaller cement shares back to focus, CLSA said in a note to clients. Read More.

Credit crunch: Blackstone smells opportunity

President Tony James says the private equity firm has an eye on debt that has been oversold in the market.

August 13 - CNNMoney.com - The debt markets may be creating trouble for some leveraged buyout deals, but private equity titan Blackstone is sniffing out opportunities.

The private equity firm is keeping an eye on the debt of buyout deals that have come under financing pressure, Blackstone President and Chief Operating Officer Tony James said Monday.

"We're starting to look directly at debt securities that are trading at distressed levels" but which aren't distressed at all, he told analysts. Read More.

PE firms to maintain M&A pace

August 14 - The Deal Blog - Boston Corporate Finance certainly isn't afraid of clambering out on a market-withered limb. The investment bank predicts flatly in a new report on recent technology M&A that buyout firms will continue making big acquisitions this year despite turmoil in the credit and debt markets. Citing strong growth among tech companies, robust corporate profits and investors' need to deploy capital, BCF says that "we do not believe private equity players will slow down their aggressive acquisition pace in the second half of 2007." Read More.

In hi-lo deal game, middle’s the winner

August 13 - Financial Week - While the plug has been pulled in the debt markets for the largest leveraged buyouts, activity in the middle market has surged on—for now.

“So far, we’ve seen no change in deal flow,” said Chris Williams, co-founder of middle-market investment bank Harris Williams & Co., adding that his company has closed five deals in recent weeks.

To the segment’s benefit—lately, at least—most middle-market deals, or those under $1 billion, have not been structured with the loosest terms, such as covenant-lite debt issues. Hence, the middle market isn’t feeling the pushback from lenders quite as much as the biggest deals are.

“The turmoil is really applicable at the higher end of the market—the $10 billion and $20 billion take-privates,” said Steve Bernard, director of M&A market analysis with Robert W. Baird, a middle-market investment bank. Read More.

Seven Questions: Steve Forbes Loves Private Equity

August 12 - Foreign Policy - Many in the U.S. Congress complain that Wall Street’s new titans aren’t paying their fair share of taxes. But Steve Forbes, editor in chief of Forbes magazine, warns that a proposed new tax on private-equity managers would only weaken the U.S. economy, punish entrepreneurs for taking risks, and hurt ordinary retirees. Read Q&A.

Funds find Detroit: Private equity money looks at affordable housing in Detroit

August 12 - Crane's Detroit Business - Private equity, flush with capital and running out of deals in traditional places, has taken aim at the local affordable-housing industry, with an expected deal in September expected to funnel more than $32 million directly into metro Detroit.

Why are such sums of money attracted to projects in distressed areas of Detroit and other communities? It's because navigating the complex world of tax credits allows banks, equity funds and builders to make money off projects that otherwise would make no financial sense.

The Lansing-based Great Lakes Capital Fund, whose Detroit office helps fund affordable-housing developments and commercial renovation in Southeast Michigan, is doing its first deal with a private-equity company, which wants to buy $300 million in bundled tax credits during the next three years. Read More.

A quiet kind of buyout boom

August 12 - Atlanta Journal Constitution - Phil Greifeld, CEO of Huddle House, remembers years of calls inquiring if his business was for sale.

It wasn't. But as buyouts flourished in 2006, Huddle House executives and directors reconsidered. Around Christmas, they sold a controlling interest to Allied Capital, a private equity firm in Washington, for $124 million.

Thanks to the flow of money into private equity — in other words, outside of public markets like the New York Stock Exchange or NASDAQ — companies around the Southeast have found willing buyers. Firms that specialize in the niche have prospered, too, because of the relative ease of raising or borrowing money.

Nationally, such deals have gotten much attention, such as the recent one that transformed Chrysler into a private company. The growing troubles in the sector are prominent, too, as the markets try to absorb the massive amount of debt needed to finance major transactions. Read More.

A Private Equity Stance on Talent

August 7 - Business Week - There are lessons to be learned from how a private equity venture views talent acquisition. While the trend now in private equity is to take companies private, the traditional long-term (three-year) goal is to have a company re-emerge as a new, stronger, more-efficient public entity.

That means moving quickly in all aspects of the business, especially talent assessment and recruitment. Too often, though, companies that aren't playing the mergers-and-acquisition equity game manage their recruitment process with an incremental approach. They might do better to employ a mind-set similar to that of a private equity venture, and move faster and think bigger. Read More.

Green technology firm finds a warm welcome on stock market

The move by the company, which has a market capitalisation of £27m, is a sign of the growing attractiveness of the green and renewable technology sectors to the City.

The company takes prototype designs for clean technologies such as clean coal power and biomass boilers, develops them and launches them on the market as commercial propositions. The firm, which was established two years ago, is obtaining several patents.

It has raised £7.5m through the placing, which values its shares at 63p. It will invest the proceeds in expanding its portfolio. Read More.

M&A Activity Heats Up Lodging

August 9 - Globe St.com - The US lodging industry has experienced an unprecedented level of merger and acquisition activity during the first half of 2007. Healthy industry operating metrics, along with an abundant amount of institutional and private debt and equity capital, has resulted in significant numbers of corporate entity and property level deals. Several recent M&A deals have been record setting, including the recently announced $26 billion acquisition of Hilton Hotels Corp. by the Blackstone Group. Read More.

The Joy of Private Equity

August 8 - Business Week - Private equity's proponents see privatizing as a fine way to fix a troubled business. Detractors say hooey—going private is about the money and that such deals do little more than make a few people very, very rich. The question: Do buyout firms like Blackstone Group and Kohlberg Kravis Roberts add value to companies or just collect a heaping wad of cash?

Kenneth Langone, the billionaire investor and Home Depot co-founder, is clearly in the quick-buck camp. As an old-time wheeler-dealer, he views private equity as little more than a way to "get more juice out of a lemon" for investors—and Langone has no problem with that. "It ain't complicated," he said on Aug. 6 at the Academy of Management's annual conference in Philadelphia, explaining why private equity deals get done. "We tend to mystify simple math." Read More.

$924m private equity funds pour into realty

August 8 - ChinaDaily.com - Singapore-based Ascendas Pte Ltd, Asia's leading business property developer, yesterday launched two China-focused private equity funds totaling $924 million to invest in the country's booming industrial and commercial property market.

The $396 million Ascendas China Industrial & Business Parks Fund will seek to invest in industrial and business park assets in China, while the $528 million Ascendas China Commercial Fund will "target high-quality commercial properties" in the first-tier cities in the country, senior company officials said.

The industrial and business parks fund will mainly invest in light industrial and logistics facilities such as warehouses, distribution centers and suburban business offices, according to Tay Eng Kiat, CEO of Ascendas China. Read More.

Energy Bill Raises Hopes

Cleantech investors hailed on Monday the passage of a long-awaited energy bill in the U.S. House of Representatives as a step toward a more cohesive national energy policy, even as they lamented what it left out.

Among the more striking provisions of the bill is a national renewable energy standard requiring utilities to generate 15 percent of their electricity from renewable energy sources by 2020. But the legislation, which passed in a 241-172 vote Saturday just before the summer recess, fell short of calling for an increase in fuel economy. Those and other results drew mixed reactions from venture capitalists and other investors who closely monitor the cleantech sector.

“There’s a real need for us to rethink how we use personal transportation,” said Peter Grubstein, managing member at NGEN Partners. “Changing the CAFÉ [Corporate Average Fuel Economy] standard would have been a push to both producers and consumers.” Mr. Grubstein also expressed disappointment the bill didn’t mandate a carbon cap-and-trade system. Read More.

Private equity investments in India can touch $15b in 2007

The total of private equity investments in India is set to cross $10 billion in the calendar year 2007 and may even touch $15 billion according to PricewaterhouseCoopers.

In the last 18 months private equity investments in India have picked up pace. According to Pricewaterhouse in 2005 the total private equity investment was $3.8 billion, in 2006 it moved up to $7.9 billion and in the first half of 2007 it has already crossed $6 billion.

PwC’s Sanjeev Krishan said: “In the last 18 months at PwC, we have done more work for private equity investors than for strategic investors. It was always the other way around before that. Private equity investments can touch $15 billion this year.” Read More.

Private equity firms honing in on health IT

August 3 - Modern Healthcare - Dealmaking surrounding health information technology businesses has been on the upswing in recent weeks, with private equity players driving much of the activity.

Private equity firms are buying, selling and making partial investment in health IT, an industry they view as primed for future growth.

"The financial markets are starting to take notice of the opportunities, and are putting their funds behind the healthcare technology sector," said Vern Davenport, executive vice president and general manager of Misys Healthcare Systems, a Raleigh, N.C.-based division of software company Misys, in an e-mail. Read More.

Have private equity tech takeovers peaked?

August 3 - Computer Business - Has the boom in private equity takeovers in the IT sector peaked already? The recent squeeze in the credit market has meant that private equity groups are finding it more difficult to gain access to the cheap debt that has fuelled the remarkable explosion in leveraged buy-outs over the last two years.

Private equity giants such as KKR, Cerberus and Blackstone fund takeovers through loans from credit investors, but escalating mortgage defaults in the US have forced the lenders to adopt a more cautious approach to would-be borrowers.

There was evidence of this shift in sentiment last week when investors at Chrysler and Alliance-Boots both rejected the terms on senior debt arising from the recent buyouts. And there are now signs that the flow of private equity moves in the technology and IT services space may be slowing down. Read More.

Canada's oil sands mergers get painfully pricey

August 3 - Reuters - Fat wallets and limited opportunities elsewhere may continue to push acquisitions in Canada's oil sands region, analysts say, though soaring costs may leave the sector open to only the very biggest companies.

Earlier this week U.S. refiner Marathon Oil Corp. agreed to pay $5.56 billion for Western Oil Sands Ltd., an eight-year old firm whose only operating asset is a 20 percent stake in the Athabasca Oil Sands Project run by Royal Dutch Shell.

The agreement is the latest in a series of big-ticket deals that have extended the reach of some of the globe's biggest oil and gas players into the muskeg and forests of northern Alberta, where an estimated 174 billion barrels of oil lie trapped in sand, a resource second only to Saudi Arabia's. Read More.

U.S. Middle Market Companies Confident about Business Growth in Year Ahead Despite Concerns about Slowing Economy

July 30 - Business Wire - Sixty-four percent of U.S. middle market companies, with revenues between $25 million and $1 billion, are predicting growth over the next 12 months, even though nearly 60% believe the U.S. economy will slow down, according to a new study from the Economist Intelligence Unit and CIT Group Inc., a leading global commercial and consumer finance company. Respondents also indicated that a "shortage of talented staff" and high "labor costs" were the top two challenges to achieving this growth.

The study, "Perspectives from America's Economic Engine: The CIT U.S. Middle Market Outlook 2007," surveyed more than 500 senior financial decision-makers at companies with revenues between $25 million and $1 billion. According to the most recent U.S. Census, the middle market accounts for more than $6 trillion in sales and employs almost 32 million Americans, which is more than twice the revenues and four times the number of employees of the blue-chip companies that comprise the Dow Jones Industrial Average. Read More.

China's Private Equity Dynasty?

August 2 - The Motley Fool - According to a recent piece in BusinessWeek, private equity firms spent a total of $737.4 billion in 2006 -- more than the entire GDP of Australia! With buyout firms profiting 20% to 30% per year on average from their lucrative deals, rapid growth in the private equity market is no surprise. Now these firms are turning to global markets for additional opportunities, and their attention is increasingly fixed on China.

In the past, Chinese government regulation has prevented foreign private equity firms from buying up companies there. However, Chinese leaders recently found that the majority of the country's corporate financing still comes from bank loans, and they now apparently realize the need for a domestic private equity industry. Accordingly, the government has created new regulations to allow private equity players access to Chinese companies. Read More.

Stubs: Private equity opens its door to the public

August 1 - Report on Business - With tightening debt markets around the world forcing private equity firms to hit the brakes on as many as 20 planned leveraged buyouts, there is speculation the big buyout boom that's been driving stock markets may finally be running out of gas.

Where not too long ago private equity could command very favourable terms from the market, making the fuel for their leveraged buyouts quite cheap, skittish investors are suddenly demanding better terms for high-yield loans. Banks that loan billions of dollars to private equity firms for buyouts are having difficulties getting debt investors to purchase the loans.

Here's the thing. The sharp slump may make corporate valuations irresistible and, come Labour Day, some market watchers believe private equity will again be putting the pedal to the metal. So what's a smart private equity player to do? Look for ways to increase their leverage even further, of course. If there's one thing private equity players know and understand, it's how to use their cash to best advantage. Read More.

Murdoch and Dow Jones: How The Deal Got Done

August 1 - NY Times Blog - While Rupert Murdoch finally won his long-coveted prize — gaining enough support from the deeply divided Bancroft family to buy Dow Jones & Company, publisher of The Wall Street Journal — closing the $5 billion deal was a marathon of conference calls and all-nighters for those involved in the deal-making process.

Following four months of back-and-forth, during which some three dozen members of the family engaged in an intense, sometimes tearful debate about The Journal’s future, the boards of both Dow Jones and Mr. Murdoch’s News Corporation voted Tuesday night to approve the deal.

In a press release early Wednesday, Dow Jones said it had signed a “definitive merger agreement” under which it would be acquired by News Corp. Read More.

Industry Groups Warn Against Tax Hike

July 31 - Associated Press - Private equity, hedge fund and real estate executives warned senators on Tuesday that raising taxes on their firms would harm a wide range of companies that benefit from their investments, including developers in poor urban areas.

Congress is debating whether to force companies set up as limited partnerships _ and their managers _ to pay taxes at the same rate as income earned by ordinary Americans. Proposed legislation would raise taxes from 15 percent to as much as 35 percent for profits earned by private equity and hedge funds, and fees paid to their managers.

Though private equity groups and hedge funds could be tempting targets for lawmakers looking to pay for new federal programs, the industry has been lobbying aggressively against the tax hike and key senators appear to be heeding their concerns. Read More.

Corporate Buyers Hit Gas on Deals

July 31 - Wall Street Journal - With deal-related financing markets in disarray, private-equity buyouts are being delayed around the world, giving corporate buyers an advantage over the cash-rich private-equity firms for the first time in years.

Consider Virgin Media Inc. The British cable-television operator is proceeding with an auction of the company after already having received this month a nearly $10 billion takeover approach from Washington private-equity firm Carlyle Group. That could benefit the cable-industry players exploring a bid, a list that includes Liberty Global Inc., Time Warner Cable Inc. and Comcast Corp.

Carlyle and a competing consortium of four private-equity firms will likely have trouble making a firm bid until credit markets calm and banks are able to sell the stockpile of debt building up on their balance sheets, people close to the matter say. The cable companies, though, likely could plow ahead. Read More.

Wheels Greased For Mergers In Oil Services

July 30 - Forbes - Worries of fading buyout activity rattled U.S. equity markets last week, but the M&A action could just be starting in the oilfield services and equipment sector.

Bear Stearns analyst Robin Shoemaker said Monday to expect more deals making among oilfield services and equipment companies. He said a shortage of skilled labor, competition for a technological edge and overcapitalization will push further consolidation. Read More.

U.S. Middle Market Companies Confident about Business Growth in Year Ahead Despite Concerns about Slowing Economy

July 30 - Business Wire - Sixty-four percent of U.S. middle market companies, with revenues between $25 million and $1 billion, are predicting growth over the next 12 months, even though nearly 60% believe the U.S. economy will slow down, according to a new study from the Economist Intelligence Unit and CIT Group Inc. (NYSE: CIT), a leading global commercial and consumer finance company. Respondents also indicated that a “shortage of talented staff” and high “labor costs” were the top two challenges to achieving this growth.

The study, "Perspectives from America’s Economic Engine: The CIT U.S. Middle Market Outlook 2007,” surveyed more than 500 senior financial decision-makers at companies with revenues between $25 million and $1 billion. According to the most recent U.S. Census, the middle market accounts for more than $6 trillion in sales and employs almost 32 million Americans, which is more than twice the revenues and four times the number of employees of the blue-chip companies that comprise the Dow Jones Industrial Average. Read More.

Drilling industry rethinks mergers

July 26 - Houston Chronicle - There are few benefits to be gained from more consolidation in the offshore drilling industry and enough work for even smaller drillers to thrive without it, a top Diamond Offshore Drilling executive said Thursday.

Yet the entire industry has had to give mergers more thought since Monday's announcement that industry titans Transocean and Global- SantaFe Corp. had agreed to join forces, he said.

"Certainly, everybody is re-looking at it in light of the recently announced transaction," Larry Dickerson, Diamond Offshore's president, said in a conference call Thursday morning to discuss the company's quarterly financial results. Read More.

Market turmoil puts squeeze on private equity deals

July 27 - Reuters - It was a week that may have changed the balance of power on Wall Street, with buyers gaining the upper hand for the first time in years.

It was also the worst week for the U.S. stock market in five years as fear of risk gripped investors.

The dealmakers and their investment banks had been in the driver's seat, forcing investors to swallow transactions at a price they dictated. Read More.

UPDATE: Chain Of Chemical Mergers Likely To Set Off Even More

July 24 - Dow Jones - The rapid pace of acquisitions recently in the typically humdrum chemicals sector has ratcheted up expectations that more are coming, as makers of the building blocks for a slew of household products seek to expand their global reach.

"We expect more consolidation," said Matt Hekman, analyst for Overland Park, Kans.-based investment adviser Waddell & Reed.

"International companies are looking to establish a presence here, and domestic companies are looking to establish, mostly via joint ventures, presences in countries with lower-cost feedstocks, like the Mideast," he said.

Considered as likely targets, say analysts, are bulk chemicals producer Nova Chemicals Corp., as well as companies in the fragmented coatings, or paint-parts, sector and manufacturers of industrial gases. Read More.

M&A Activity Buoys Stocks

July 23 - Business Week - Another wave of M&A activity, plus earnings news from Merck, pushed stocks higher Monday as markets approach the heart of second quarter's earnings season.

On Monday, the Dow Jones industrial average climbed 92.34 points, or 0.67%, to 13,943.42. The broader S&P 500 index gained 0.77%, or 11.8 points, to 1,545.90. The tech-heavy Nasdaq Composite index edged up 2.98 points, or 0.11%, to 2,690.58.

Stock indexes were bouncing back a bit from Friday, when major averages fell more than 1%, including the Dow, which fell from its record close above 14,000. However, Monday's recovery was weak: for every 17 stocks dropping in price on the New York Stock Exchange, 16 rose in price. On the Nasdaq, the ratio was 16-14 negative. Read More.

Mergers, acquisitions on target to set records

July 20 - The Vancouver Sun - The pace of worldwide mergers and acquisitions is on fire and the total values are likely to set records this year, according to a survey released Thursday, with the majority of Canadian and global dealmakers calling the current M&A environment good or excellent.

Worldwide, mergers chalked up a record $2.7 trillion US in deals in the first half of 2007, nearly 70-per-cent higher than the same period last year and outstripping the previous record of $1.93 trillion US set in 2000, said the survey by New York-based Association for Corporate Growth and Thomson Financial. Read More.

Time to prepare for the coming M&A wave

July 19 - China Daily (Commentary) - The continuous economic boom that has taken place in China over the last 28 years makes it a powerhouse of global prosperity. And now the country has become involved in the newest development of economic globalization.

The wave of mergers and acquisitions (M&As) among international businesses that has swept across the globe will ensure the rise of global corporations in the 21st century.

This explosion in M&As began in 2004 and peaked in 2006, when deals worth $3.5 trillion were inked. The deal-making has continued apace this year - M&A agreements involving $2 trillion were reached in the first four months of this year, up 60 percent from the same period last year.

The M&A deals range from the finance, electricity generation, property and media sectors to consumer goods. They have taken place in the US, Europe and many developing countries. Read More.

M&A in Trouble? Not Necessarily

July 21 - WSJ - The merger-and-acquisition boom looks as though it's in trouble. Bond and loan markets are tightening, which will make it tougher for private-equity firms to raise the cash they need to finance leveraged buyouts.

But Robert Keiser, an analyst at Thomson Financial, has tried to cast a different light on the doom and gloom.

According to Mr. Keiser, a vice president in Thomson's Proprietary Research group, there is a 67% correlation between economic activity and M&A activity going back to 1990. Though the economy may be slowing a bit, it's still growing at a healthy clip of roughly 3% annually. Read More.

Atmosphere phenomenal for mergers and acquisitions, survey finds

July 18 - The Business Journal: Phoenix - With a record $2.7 trillion in worldwide mergers during the first half of the year, dealmakers are giddy. According to a new survey by the Association for Corporate Growth and Thomson Financial, approximately 93 percent call the M&A environment "good" or "excellent."

However, private equity professionals are concerned that the easy availability of debt financing (which has helped fuel transactions) will tighten, with 68 percent saying the debt markets will be worse in the next year.

In Arizona, the market continues to run hot, garnering interest from out-of-state and international buyers. Read More.

RSM McGladrey CEO/CFO Survey Indicates Positive Growth for Small, Middle-Market Companies

July 18 - Carolina Newswire - The manufacturing and wholesale distribution segments in North Carolina and South Carolina continue to see positive growth across several industry segments, according to the RSM McGladrey 2007 Manufacturing and Wholesale Distribution National Survey.

Conducted this spring, the second annual RSM McGladrey survey provides insights into what CEOs, CFOs, and other senior industry executives are thinking, doing and planning to grow their businesses in an increasingly competitive marketplace. Industry executives were asked questions about cost structure, profitability, technology initiatives, operations, globalization and more.

Of the 947 surveys completed by executives of manufacturing and wholesale distributor companies nationwide, 43 originated from North Carolina and South Carolina. Read More.

Transportation and logistics M&A activity continues to make strides

July 17 - Logistics Management - Coming off of a busy 2006 in which there were approximately $7 billion in mergers and acquisition activity in the transportation and logistics market, activity in this space through the first seven months of this year appears to be maintaining that momentum, according to Ben Gordon, managing director of BG Strategic Advisors.

Speaking at the eyefortransport 3PL Summit/Outsourcing Logistics event in Atlanta last month, Gordon likened the brisk rate of deal making in this sector to a form of “winner take all economics,” in which there is a rapid ascension of capital being deployed by private equity and venture capital firms into transportation and logistics companies. Read More.

Global M&A activity expected to slow down: But technology M&A deal value may still be booming

July 17 - VNUNET - The current worldwide boom in mergers and acquisitions (M&A) is set to slowdown, according to new research.

Consultancy KPMG says the total number of global deals in 2007 will decrease from 2006, a year when the average size and volume of M&A deals reached an all-time high.

'The momentum which delivered record M&A growth in 2006 is not likely to be sustained,' said Stephen Barrett, international chairman, corporate finance at KPMG. Read More.

M&A Activity Still Strong in Private Equity Firms

July 16 - CNBC - Global M&A activity has reached its peak, according to a report recently released by KPMG, though two analysts believe that's only true among small companies -- not when the buyers are large businesses or private equity firms.

Tom Burnett, director of research at Access Wall Street, said M&A activity among small companies may have peaked for now, but he believes high-profile deals could still continue.

He referred to Rio Tinto's recent cash bid for aluminum producer Alcan, as well as Royal Bank of Scotland's bid for Dutch group ABN Amro. Read More.

M&A engine could be sputtering

July 16 - Financial Week - Deal-making in the first half of 2007 was ahead of last year’s record pace, but the value of deals.

The pace of deal-making in the first half of 2007 continued to one-up the record set in 2006, with the total value of both announced and completed M&A deals up 51% and 32%, respectively. But June figures showed a marked slowdown. According to research from Zephyr, the M&A database arm of Bureau van Dijk Electronic Publishing, the total known value of deals announced last month was $442 billion, less than half of May’s $891 billion bonanza. That’s the steepest drop in mergers and acquisitions in 14 months, according to Bloomberg, and some market watchers are saying it may be a sign that the five-year bull market is nearing an end.

The decision by leveraged buyout firm Blackstone Group to sell shares to the public in the largest U.S. IPO in five years could be another sign of a top. Read More.

Canada to review mergers policy

July 12 - MSNBC - Canada's minority Conservative government has set up an independent panel, led by a prominent businessman, to examine competition and investment policies in the wake of a flurry of mergers and acquisitions that could reshape key sectors of the economy.

The panel's findings are widely expected to lead to a significant relaxation of foreign ownership and competition rules in the telecommunications industry. They could also lay the groundwork for mergers among domestic banks, which have been blocked for the past decade by political sensitivities.

The group is also likely to address concerns about the "hollowing-out" of corporate Canada as a result of a series of foreign takeovers of some of the most prominent companies. Read More.

Chiefs of Arcelor Mittal, U.S. Steel predict more M&A

July 12 - MarketWatch - The chiefs of two of the world's largest steel makers said Thursday they see more consolidation ahead, most likely across continents and within China's fragmented and fast-growing industry.

Lakshmi Mittal, chief executive of Arcelor Mittal, and John Surma, chief executive of United States Steel Corp., told the Associated Press in a joint interview that the steel industry can expect to see more intercontinental combinations like those of the past year as opposed to the regional marriages of earlier years.

The executives were in New York for a board meeting of the International Iron and Steel Institute, for which Surma serves as chairman.

"I think consolidation now will be between bigger companies and perhaps across longer distances and will be bigger transactions," Surma said. "How quickly that happens depends on how adventuresome companies are and how much they want to risk." Read More.

India second in global M&A deals ranking

July 11 - The Hindu - India has been ranked second in the global M&A deals this year so far in the Asia-Pacific region, with a total outbound deal value of $ 13.5 billion, a latest report says.

According to data complied by global consultancy firm 'Dealogic', Australia tops the Asia-Pacific cross-border outflow with over 125 deals worth $ 30 billion, followed by India with a total of 74 foreign acquisitions in the current year so far.

Some of the significant outbound cross-border deals include Suzlon Energy's acquisition of REpower for $ 1.7 billion, Vijay Mallya-led United Spirits buying out Whyte & Mackay for $ 1.11 billion, Tata Power picking up stake in two Indonesian firms and Essar Group's purchase of Canadian Algoma Steel for about $ 1.55 billion. Read More.

Small companies, big shoppers

July 9 - The Economic Times - Call it a buying spree by India's minnow brigade in the global bazaar. Just when you thought that the strengthening of the rupee is taking its toll on exports, a bunch of small firms seized the opportunity to gobble up a few foreign firms. As many as 46 overseas acquisitions by small and medium-sized companies in India have been recorded in the past one year alone.

Of the 46 acquisition deals that have been concluded in the past year, 41 companies are by small, says a research analyst at the Federation of Indian Chambers of Commerce and Industry.

Though a bulk of these acquisitions are in the IT space, sectors like pharmaceuticals, gems and jewellery, agro, automotive, electrical and electronics and food and beverages, among others, too have added a chapter to the M&A story. The IT industry had the maximum number of acquisitions to its credit. While big Indian companies have been shying away from large ac-quisitions, mid-size IT players have been setting more aggressive acquisition targets. Mid-tier companies need to attain scale to get invited to the same bids as the big firms. Some of them are focused on niche areas and need to build competencies in those areas. Read More.

PE firms beat India Inc on the M&A turf

The private equity juggernaut, which has been scorching the global deal street, has come of age in India. For the first time, the value of PE deals in a single month has overtaken that of strategic merger & acquisitions. June reported $1.8 billion worth of PE deals in the country — the highest in a single month — overtaking strategic M&A deals at $1.72 billion.

As per the latest deal tracker by advisory firm Grant Thornton, there were 36 PE deals during June totalling $1.81 billion as against 24 deals worth $1.56 billion during May.

Says Grant Thornton partner-corporate advisory services CG Srividya, “One of the reasons for this is the increasing number of buyouts and PE interest in the real estate and infrastructure sectors. Our estimates show that close to $1 billion worth of PE money went to the real estate and infrastructure sectors in June alone.” Read More.

M&A Market Strong But Debt Concerns May Curtail Activity

July 5 - Investor's Business Daily - It's become something of a spectator sport, trying to predict when the market for mergers and acquisitions will finally back off of its breakneck pace.

It didn't happen last quarter. In fact, the $1.65 trillion in announced global deals set a new record for a three-month period, according to data from Thomson Financial.

The third quarter is off to a roaring start as well. Blackstone bx late Tuesday announced a $26 billion takeover of Hilton Hotels. And legendary private equity outfit Kohlberg Kravis Roberts filed plans to go public on the heels of Blackstone's huge IPO in late June.

Those events notwithstanding, you still hear plenty of chatter that M&A activity is headed for a slowdown. Much of the talk centers on lenders, and whether they'll finally tighten the reins on the cheap loans and attractive financing packages they've been trotting out. Read More.

India witnessing buoyancy in M&A activity on robust economy - report

July 2 - Forbes - India has been witnessing buoyancy in mergers and acquisitions activity, thanks to a robust domestic economy, relative improvement in infrastructure, unprecedented liquidity and continuation of economic reform process, according to ICICI Bank's Private Banking Research Division.

In its Global Investment Outlook report, the bank says the total equity deals struck by Indian companies have crossed 50 bln usd in 2007.

Of these, strategic mergers and acquisitions were of 46.4 bln usd, while private equity deals were worth 5.1 bln usd. Read More.

China and India Pace Asia Stock, M&A Activity

WSJ - Chinese and Indian companies raised the most money from the stock market during the first half, according to a ranking of Asian countries excluding Japan, Australia and New Zealand, from data provider Dealogic.

China and India also led in the mergers-and-acquisitions league, Dealogic data showed Friday. Dealogic's preliminary data will be released in a full report next week.

Fueled by the booming economy, the number of Chinese initial public offerings nearly doubled in the January-June period from a year ago and helped push the number of stock deals in Asia, excluding Japan, up 55% from ... Read More (subscription required)

M&A on pace for record despite signs of strain

June 29 - Reuters - Global M&A activity is on target for a record year after a first-half surge, bankers say, despite growing signs the benign lending environment that has underpinned the current boom may be coming to an end.

An increase in cross-border corporate mergers helped Europe push past the United States in volume for the first time in four years, and lifted the global tally of announced M&A in the first half by 51 percent to $2.8 trillion, according to preliminary data released on Friday by research firm Dealogic.

Global M&A was $1.9 trillion in the first half of 2006.

"It's undoubtedly going to be the biggest M&A market ever (this year)," said Dag Skattum, JPMorgan Chase & Co.'s global co-head of M&A. Read More.

Pace of Mergers and Acquisitions Expected to Continue

July 1 - SeekingAlpha - Rick Konrad submits: The merits (and demerits) of private equity have been debated by market participants, and unfortunately ne'er-do-well politicians in much of the first half of this year with a recent crescendo in the debate. I think this article highlights some of the dimensions around the issue and provides a number of useful data points. Read More.

Asia M&A activity soars 50 pct in record first half

June 29 - Reuters - Asia Pacific mergers and acquisitions excluding Japan surged 50 percent in the first half to a record $253 billion, with Australian buyout deals and an overseas push by Indian firms expected to keep activity at high levels.

Australia accounted for $76 billion worth of deals in the half, followed by China ($55 billion) and India ($39 billion), according to preliminary data from Dealogic.

"This year has been characterised by a good spread of volumes. India's been very strong and success has begotten success," said Matthew Hanning, head of Asia Pacific M&A at UBS Investment Bank. Read More.

UK M&A gets off to a sprint start

June 29 - MSNBC - London-based investment bankers who spent the past week hyperventilating into a brown paper bag about the turmoil in the credit markets should come up for air.

This has been the fastest start to the year ever for UK target acquisitions, so, even if the markets worsen, they will have already earned their bonuses.

During the first six months of the year, there were 1,405 deals worth a total $216bn (£107bn) – a 72 per cent increase on the same period last year - according to data from Thomson Financial. The huge volume of activity has in part been driven by foreign acquirers shopping for investments in the UK. Read More.