Will Kraft Foods prompt a surge in worldwide takeovers?
As the dust begins to settle on the Kraft Foods takeover of Cadbury there is speculation that we could see a new wave of takeovers and mergers across the world. It is known that many "dealmakers" are currently juggling debt for equity ratios in the quest to find the next big deal and the next big pay packet. When you consider that many well-known companies around the world have had their most difficult period in their history, over the last two years, there are some very juicy cherries to be picked in the short term!
Many investors are now looking around and trying to predict the next big takeover and the next big deal as there are potentially massive profits to be made picking the right investment. However, before every investor in the UK and around the world gets too carried away it is worth remembering that rumours persist in the financial markets on a day by day basis and very few of these rumoured deals actually come to fruition.
Buying on the back of rumour and speculation is a very high-risk strategy and one which can seriously backfire if you "put all of your eggs in one basket". Professional advice should be taken before you invest any money into the stock market.
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