Tuesday, September 22, 2009

M&A Boom Signaled for S&P 500 Index on Record Cash

Never before have U.S. companies piled up cash faster compared with interest costs than they are now, setting the stage for a surge in mergers and acquisitions.

As the economy emerges from the worst recession in 70 years, cash flow may rise from the $1.5 trillion reported by the Commerce Department for the year ended in June, according to data compiled by Credit Suisse Group AG and Bloomberg. The amount reached a record in the past 12 months amid the biggest wave of firings since World War II and central bank interest rates near zero percent.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=az6WcLHcWqrU

No comments:

Post a Comment