Skip to: Content
Skip to: Site Navigation
Skip to: Search

July 25, 2008 9:47:43 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Credit, Economy Bring M&A Action to a Crawl

Posted Dec 18, 07 11:40 AM CST in Business 

(Newser) – The slowing economy and financing costs that have more than doubled since June because of the subprime collapse could ice the pace of mergers and acquisitions in 2008, Bloomberg reports. After a record $3.9 trillion in deals in 2007, analysts predict transaction value could plummet 20%. "The mega-LBO is dead,'' says an ABN Amro takeover expert.

Takeovers have slowed 33% since midyear, and the continuing falloff will hit big banks that typically help broker M&As right in the bottom line. Goldman Sachs, the world's biggest takeover adviser, is preparing for a revenue decline that could lead to its first profit drop since 2002. “We're in a very different environment than we were a year ago,” says Bank of America's global head of mergers.

Source Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Americans Falling Behind on Credit Cards

    Dec 23, 07 10:35 PM CST
    Americans Falling Behind on Credit Cards It’s already looking like an iffy New Year for many credit-card holders: the number of Americans falling behind on their payments spiked sharply this year and analysts don’t expect 2008 to be much brighter. The value of credit card accounts at least 30 days late surged 26% in October to $17.3 million, the AP found. Defaults—when lenders give up and write off the debt—jumped 18% to almost $961million. More »

  • Banks Scuttle SIV Bailout

    Dec 21, 07 3:56 PM CST
    Banks Scuttle SIV Bailout The three banks charged by Treasury with setting up a fund to bail out investments threatened by the subprime mess are abandoning the project, the Wall Street Journal reports. Citigroup, Bank of America and JP Morgan Chase had been working since September on the plan to rescue structured investment vehicles, but they have struggled to raise money for the project. More »

  • Banks to Form $100B Fund to Back Mortgage Securities

    Oct 13, 07 6:37 PM CDT
    Banks to Form $100B Fund to Back Mortgage Securities Citigroup and other major banks are banding together to create a $100-billion fund to buy back shaky mortgage securities in order to contain the threat of their undermining the markets and hurting the economy. The unprecedented project, pooling money from banks like JP Morgan and Bank of America, has been hatched in cooperation with the Treasury Department, the Wall Street Journal reports. More »

  • Outlook Bearish for Bear Sterns Hedge Funds

    Jun 20, 07 7:02 AM CDT
    Outlook Bearish for Bear Sterns Hedge Funds Two major Bear Stearns hedge funds that once controlled more than $20 billion in assets are on the brink of collapse after disastrous losses in securities backed by subprimes. The Journal reports a bailout plan that would have kept the funds afloat fractured last night, and the consequences could ripple through the mortgage market in the weeks ahead. More »

An Alltel sign is seen, Wednesday, Aug. 29, 2007 in Little Rock, Ark. Alltel Corporation shareholders approved Wednesday, a $24.7 billion buyout by a pair of private equity firms. (AP Photo/Mike Wintroath)   (Associated Press)
US-MARKETS-NYSE-DOW   (Getty Images)
Exterior of an Applebee's sign near their restaurant in Milpitas, Calif., Tuesday, Oct. 30, 2007. Shareholders of the bar-and-grill chain Applebee's International Inc. on Tuesday approved a $1.9 billion...   (Associated Press)
Flags wave along the Michigan Ave. Bridge outside the Chicago Tribune Tower in a Chicago file photo from April 12, 2006. The Federal Communications Commission approved the $8.2 billion buyout of the Tribune...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (1 of 1)

Tags

subprime mortgages  • mergers and acquisitions  • JPMorgan Chase  • Goldman Sachs  • Bank of America  • LBOs


Loading...

Loading...

Today's Most Popular


Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »