Investment bankers caught offguard by takeover flurry
Investment bankers in the UK are this week rearranging their holidays after a flurry of takeovers and mergers in the UK in what is becoming a record month for August. A number of prominent companies on the UK stock market are now involved in acquisitions which are worth upwards of £20 billion and there are significant fees to be had
For the first time since the credit crunch began back in 2007 a whole host of investment bankers have been recalled from their summer holidays to man their desks and carry out various checks and due diligence. It is believed that 35% of investment banking fees will derive from the mergers and acquisitions market in 2010 which does not compare too badly to the 48% share back in 2008. So is this the start of a major mergers and acquisition stampede?
There's no doubt that the weakness in sterling has attracted a number of propositions for UK based companies but interestingly there are also a number of major UK companies looking to acquire various overseas counterparts. It will be interesting to see how long the current flurry of deals lasts and indeed at what level investors begin to see value in the UK market.
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