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The Flip-Side of Merger Activity


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May 02, 2005

The Flip-Side of Merger Activity

Amey Stone

Sometimes I feel like all that is keeping this market afloat is mergers. I started thinking about this topic yesterday after I saw the newswire headline "Stocks Surge on Merger Announcements."

I usually feel more been optimistic on mergers since it indicates a willingness to invest in the future. Now that there are such clear signs the economy is slowing, I worry about the flip-side of all this activity.

Could it really be that companies are merging because they see few other ways to increase sales?

Or, that they see fwe other ways other than buying a competitor, slashing costs, integrating, to increase profits? Could be.

12:55 PM

Markets

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