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Story StocksEXPERT VIEW: LEHMAN'S CRASH HAS LIMITED IMPACT ON M&A
8 minutes ago - Asia Pulse
Related Companies
Symbol Last %Chg
LEH 0.30 42.86%
As of 4:07 PM ET 9/16/08The shock wave from the bankruptcy filing of Lehman Brothers Holdings Inc. is quickly spreading around the world, triggering severe stock market declines and undermining confidence in the U.S. dollar.
To assess how Lehman's failure may affect the market for mergers and acquisitions, The Nikkei Business Daily interviewed Katsuyuki Hasegawa, a senior economist at the Mizuho Research Institute.
Excerpts from the interview follow.
Q: How do you think Lehman's business breakdown will impact M&A activity?
A: Lehman was a major player in the M&A market, but its bankruptcy may not necessarily have a direct impact. Worldwide, M&As between January and August recorded sharp declines from a year earlier in both number and monetary value. Even if Lehman had not gone belly up, the downtrend in M&As probably would have been present all the same.
But the depreciation of the U.S. dollar and the downside risk for the global economy will likely intensify as a result of Lehman's failure. Therefore, there is now a greater chance that the M&As market will cool down further.
Q: What about the consequences for Japanese companies?
A: Foreign firms' M&As of Japanese companies may decrease because stock swaps, the method that foreign firms often use in corporate acquisitions, will become more difficult amid lower share prices. In fact, the number of M&As launched by foreign companies targeting Japanese businesses already dropped more than 35 per cent from a year earlier in the January-August period.
By contrast, the number of Japanese companies' M&As of foreign firms showed a slight increase in that period. This is because Japanese companies have improved their financial health through restructuring efforts. Since they can fund their M&As with cash, their stock prices have a relatively weak influence on their M&A-related decisions.
Q: So Japanese firms may play a leadership role in the M&A market?
A: Provided that the economic downturn does not worsen, the current situation could be seen as an opportunity for Japanese companies to further globalize their operations.
(Nikkei)
research.scottrade.com/public/markets/news/...y=100-261u0574-1
www.finanznachrichten.de/nachrichten-aktien/lehman-brothers.asp
News Overview News Headlines Briefing Commentary PR NewswireDaily Sector Wrap
Stock Market Update
Story StocksEXPERT VIEW: LEHMAN'S CRASH HAS LIMITED IMPACT ON M&A
8 minutes ago - Asia Pulse
Related Companies
Symbol Last %Chg
LEH 0.30 42.86%
As of 4:07 PM ET 9/16/08The shock wave from the bankruptcy filing of Lehman Brothers Holdings Inc. is quickly spreading around the world, triggering severe stock market declines and undermining confidence in the U.S. dollar.
To assess how Lehman's failure may affect the market for mergers and acquisitions, The Nikkei Business Daily interviewed Katsuyuki Hasegawa, a senior economist at the Mizuho Research Institute.
Excerpts from the interview follow.
Q: How do you think Lehman's business breakdown will impact M&A activity?
A: Lehman was a major player in the M&A market, but its bankruptcy may not necessarily have a direct impact. Worldwide, M&As between January and August recorded sharp declines from a year earlier in both number and monetary value. Even if Lehman had not gone belly up, the downtrend in M&As probably would have been present all the same.
But the depreciation of the U.S. dollar and the downside risk for the global economy will likely intensify as a result of Lehman's failure. Therefore, there is now a greater chance that the M&As market will cool down further.
Q: What about the consequences for Japanese companies?
A: Foreign firms' M&As of Japanese companies may decrease because stock swaps, the method that foreign firms often use in corporate acquisitions, will become more difficult amid lower share prices. In fact, the number of M&As launched by foreign companies targeting Japanese businesses already dropped more than 35 per cent from a year earlier in the January-August period.
By contrast, the number of Japanese companies' M&As of foreign firms showed a slight increase in that period. This is because Japanese companies have improved their financial health through restructuring efforts. Since they can fund their M&As with cash, their stock prices have a relatively weak influence on their M&A-related decisions.
Q: So Japanese firms may play a leadership role in the M&A market?
A: Provided that the economic downturn does not worsen, the current situation could be seen as an opportunity for Japanese companies to further globalize their operations.
(Nikkei)
research.scottrade.com/public/markets/news/...y=100-261u0574-1
www.finanznachrichten.de/nachrichten-aktien/lehman-brothers.asp
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