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.
Share this..
Related stories
Is there a counter bid on the way for HBOS?
It has been revealed that plans for a counter bid for HBOS are well underway with leading Scots financier Jim Spowart apparently the man chosen to head the consortium bid if it ever gets off the ground. The Scottish government has become involved and Scottish secretary Jim Murphy is believed to be in talks about a possible second bid for the bank.
While the government has been very...
Phased compensation for Icesave customers
Icesave customers' compensation payments will be phased over the coming weeks, the Financial Services Compensation Scheme (FSCS) has announced.The FSCS explained that depositors have been sent emails with information on how to claim, but will not be able to do so until they receive a second email.When this arrives, they will be able to log into their Icesave accounts and transfer their money, whic...
Read MoreNorthern Rock announces losses of £1.36 billion
Northern Rock today announced losses of £1.36 billion although £1.2 billion of the losses incurred as a result of interest charges and fees paid to the UK government. While there's been no official confirmation as to the remaining balance of taxpayer funding owed by the bank it is known to be significant and into the billions of pounds. So what does the future hold for Northern Rock?
Why is the London property market so strong?
A number of property experts have released their forecasts for 2010 with some suggesting that the London property market, i.e. central London, will again be the strongest in the UK during 2010 and will bounce back harder and faster than any other area of the market. Some people are even suggesting that London property prices will hit pre-credit crunch highs in 2010, which would indicate the London...
Read MoreAudit commission identifies £215 million of public sector losses
The Audit Commission has today issued a report for the tax year 2008/9 in which cross-referencing of records in areas such as deaths, expired visas, benefits, students and tax returns has identified a loss of public sector finance in the region of £215 million. This money is alleged to have been lost due to error, fraud and overpayments by an array of local governments in the UK at a time when pu...
Read More