Rise in Mergers Signals Fresh Confidence

Chief execs becoming more bullish about recovery prospects
By Rob Quinn,  Newser Staff
Posted Sep 29, 2009 3:00 AM CDT
Xerox Corp. announced yesterday that it will buy Affiliated Computer Services Inc. for $6.4 billion in cash and stock.   (AP Photo/Douglas Healey, file)
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(Newser) – Mergers and acquisitions activity is still way down from pre-financial crisis levels, but a recent flurry of big deals suggests America's chief executives are regaining confidence in their own businesses. Recent mergers have involved strategic buys by big companies instead of the debt-fueled private equity buys seen a couple of years ago. That bodes well for a strong recovery, analysts tell the New York Times.

"This is sign that things have stabilized,” said a Credit Suisse analyst. “CEOs are beginning to say, ‘If I don’t buy it now, it’s only going to get more expensive.’" The health care and technology sectors have been leading the way in deal-making.  "At the end of the day, in tough times, strong companies look to invest in their future," said Xerox's chief executive, who yesterday announced a $6.4 billion deal to buy Affilated Computer Services.