Tag Archives: acquisitions
M&A keeps the market boiling! Stock prices jumped again this week as investors snapped up companies that might be candidates for a merger, acquisition or some other type of corporate shakeup. Our contrarian value play from last week, Citigroup (NYSE: C), closed at a new 52-week high today on speculation that the Citi might be planning to break itself into several pieces.
Tenacious! We’ve seldom seen a stock market that could hold on like this, for as long as it has, without a meaningful pullback. Looking out to the second half of this year, and into 2007 and 2008, we’d have to say that the market’s tenacity is a very bullish omen.
Wall Street is healthier than it may look on the surface. One sign is the continuing drumbeat of takeover bids. In recent weeks, we’ve had SBC Communications go after AT&T, while Verizon and Qwest have battled it out over MCI. Kirk Kerkorian, for reasons I still can’t quite fathom, last week made a tender offer for $868 million worth of General Motors shares.
What are we supposed to make of this week’s blockbuster merger story — the proposed hookup between SBC Communications(NYSE: SBC) and AT&T (NYSE: T)? Frankly, I’m less than thrilled. SBC has enough problems to deal with in its own backyard without taking on the declining business fortunes of Ma Bell.