Mega Bid Sees Wall Street End Session Higher
Aside from the doom and gloom currently prevailing in worldwide stock markets there may be signs of hope emerging in the US with news of a multi-billion dollar takeover bid. It has been announced that Dow Chemical is to acquire Rohm and Hass for nearly $19 billion with finance provided by leading groups including Warren Buffett's Berkshire Hathaway. If the old sage has seen a spot of value in the market, are we to understand the bottom may not be far away?
While news of the agreed deal saw all other leading chemical groups pushed higher, this may not signal the end of the downturn. Companies such as Dow Chemicals are always in the market for future investment and with the likes of Warren Buffett behind them, they will always have access to finance for the big deals. These are the players who tend to look more long term than average investors in the UK and the US, these are the players who are prepared to buy on the way down in the knowledge that their investments will pick up when the economy starts to grow again.
We will see more and more of these large deals in the US and the UK as the economies fall further and investors bail out on short term concerns. Investment is akin to a long term game, rather than the short term strategies which many investors use.
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