03/13/2006

Why the Urge to Merge?

Hello:

Today, there is a rash of takeover announcements. Capital One is buying Northfork, McClatchy is buying Knight Ridder, Watson Pharmaceutical is buying Andrx, the NASDAQ offering to buy the London Stock Exchange and Pinnacle Entertainment is buying Aztar to name a few. Why is there this sudden urge to merge?

We believe that it could be related to the announcement on Friday by the Bank of Japan, that they will change the direction of their policy from one of fighting inflation to one of managing interest rates. What this means is a reduction in the amount of cheap money available globally.

Companies may be adopting a "now or never attitude" and spending cheap money while it is still available in order to satisfy their urge to merge.

Many leading edge baby boomers express a desire to instill values in their children and grandchildren. What better way than to do a family volunteer event with a local non-profit organization, such as yours?

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager