05/14/2007

More Merger Mania

Hello:

Merger Mania continues!

Last week, the Financial Times reported that global "mergers and acquisitions volumes leapt over the $2,000bn mark ...M&A activity since January 1 this year is 63% higher than in 2006".

According to Jim Swanson of MFS Capital, Inc., the cost of borrowing money is 7% to corporations, on average, and the return on equity on a listed company is 18%, on average, so this merger mania should continue for some time.

This M&A activity can create share value in the near term, but will it be beneficial for domestic businesses in the long term remains to be seen.

Now that tax season has passed, would you like a meeting to review your organizations written invesstment policy statement? Please call us to set an appointment.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager