Who's next as a merger frenzy takes off?
Dealmakers expect 2013 to be a big one for big deals. Here are some names that could become buyouts.
According to The New York Times, a Brunswick Group survey of investment bankers and deal lawyers found that a whopping 97% expect more deals to be done in North America this year compared with 2012, and 82% of those surveyed expect more deals internationally. That's the highest level in the survey's six-year history.
The results aren't that surprising, though, given the stock market surge this year, the continued economic rebound and plentiful supply of low-cost capital.
So far in 2013, Warren Buffett's Berkshire Hathaway (BRK.A) and 3G Capital have agreed to buy H.J. Heinz (HNZ) for $24.3 billion, the largest deal in the history of the food industry. Michael Dell and Silver Lake Partners offered to buy Dell (Dell) for $24.4 billion (although shareholders including activist investor Carl Icahn have argued that the deal undervalues the company). And just today came word that American Realty Capital (ARCP) offered $5.74 billion for Cole Credit Property Trust II.
That's only the start.
Plenty of deal speculation swirls around companies such as Hewlett-Packard (HPQ) and Yahoo (YHOO), which are eager to reinvigorate their moribund businesses. Best Buy (BBY) founder Richard Schulze's effort to take the consumer electronics retailer private flopped, but others may try. And if J.C. Penney (JCP) CEO Ron Johnson's much-derided turnaround plan fails, the venerable retailer may get swallowed up by a competitor.
A surge in dealmaking could help bolster the fortunes of struggling luxury retailers such as Tiffany (TIF) and Coach (COH) where the 1%-ers like to spend their bonuses. It's also good news for News Corp.'s (NWSA) Wall Street Journal, where bankers take out ads congratulating themselves on their latest triumphs. Whether Wall Street's rising tide will lift the boats of the middle class remains to be seen.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
More Market News
These picks continue to gain amidst the seemingly insatiable demand for the nation's top hot drink.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'