FRANKFURT: Most years, the United States handily beats Europe for bragging rights in deal making, based on the total value of mergers and acquisitions. But this year, Europe is pulling ahead. The current takeover battle in banking, the biggest in the industry's history, is just the latest sign of the growing deal frenzy on the Continent. That frenzy is prompting changes in corporate behavior. European companies are scrambling to put themselves in play, or fend off unwanted approaches, much like American companies did in the 1980s. Europe's deal mania reflects a number of trends: more active shareholders, particularly hedge funds; an influx of private equity money; low interest rates; and a wealth of European companies with valuable assets that are ripe for the picking, in some cases because they have been poorly managed.
FRANKFURT: Most years, the United States handily beats Europe for bragging rights in deal making, based on the total value of mergers and acquisitions.
But this year, Europe is pulling ahead. The current takeover battle in banking, the biggest in the industry's history, is just the latest sign of the growing deal frenzy on the Continent.
That frenzy is prompting changes in corporate behavior. European companies are scrambling to put themselves in play, or fend off unwanted approaches, much like American companies did in the 1980s.
Europe's deal mania reflects a number of trends: more active shareholders, particularly hedge funds; an influx of private equity money; low interest rates; and a wealth of European companies with valuable assets that are ripe for the picking, in some cases because they have been poorly managed.
a wealth of European companies with valuable assets that are ripe for the picking Yup, here it is! Assets ripe for the picking. They are right there, ready to have profit squeezed out of them. Hopefully they can be made more productive with worker layoffs, for greater efficiency. With great trickle down benefits for the laidoff workers, to be sure.
Little known fact: Assets are much like grapes! Pick them, juice them, and ferment them for great delicious profit. While you're at it, why not also burn down the vines? Who needs those when the grapes are gone?
