On October 20, 2009
Macho M&A Should Go the Way of the Do-Do
What looked like a surge in takeovers has gone sharply into a reverse: suddenly more bids are being withdrawn than launched. It seems the boardroom appetite for expansion has turned out to be greater than the balance sheet can stomach. In quick succession the Spanish consortium bidding for National Express has walked away and mining group Xstrata has called off its bid for rival Anglo American, just as BHP Billiton abandoned its attempt to merge with Rio Tinto. Kraft’s tentative approach for Cadbury could yet fall on the floor before it is even placed on the table. The surge in bids looked like a sign the recovery was over with opportunists pouncing on rivals ahead of the economic upswing. They…
0 Comments