Corporate mergers to be major trend in 2005

Corporate mergers will be a strong trend this year according to almost all of the managers participating in the latest Morningstar European Fund Trends survey.

Morningstar.co.uk Editors 24 February, 2005 | 3:34PM
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While 92% said merger activity was likely to be heavy managers said it would be focused in certain markets and sectors. Developed markets were expected to see the most activity. Some 40% said America would be the busiest while 21% said Europe excluding the UK and 19% said the UK. Japan came next with a tenth of the vote.

Managers were more evenly divided as to which sectors would see the most mergers and acquisitions. Financial services came top with 28% but consumer goods, healthcare and telecommunications also received a number of votes. Overall managers were aiming to be invested in the company being bought rather than the one acquiring.

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