Thursday 20 September 2012

M&A pick-up a good sign

So now we have Sporting Bet, to add to Glencore/Xstrate and BAE/EADS - OK it is not really on that scale is it? But nonetheless a sign that the long-dormant M&A market maybe starting to awake from its slumber.

Now I am getting a little ahead of myself as I have nto met an investment banker in a happy mood for many moons and they all appear to be just as depressed as ever in September.

The global QE and efforts to revive the economy may though help in the short-term. Even though for sharehodlers M&A is normally a bad idea, for the markets and economy its is a greathing, generating much needed change and getting money spent rather than stored away doing not much.

Also when bad companies go under this is also a good sign - as is the case with Hibu this morning, long a victim of change, Yellow Pages may soon be gone to the cheers of forests worldwide.

Now, let's just hope that after Xcite Energy's proving up of its North Sea field announced today, this minnow can attract some attention.


James S said...

Excite has certainly attracted attention - currently 12% down.

CityUnslicker said...

I know, AIM is silly isn't it! No news for a few months means a sell-off, even as progress is made...

CityUnslicker said...
This comment has been removed by the author.
Budgie said...

Xcite down a whopping 17% on confirmation of really rather good news (147,000 barrels production)? What is going on? If only all my oil picks were this healthy as businesses.

Popinjay said...

M&A is just an accounting wheeze whereby 2 bust companies seem to merge into one solvent company.
Its a temporary solution, nothing more.
It was ever thus.