For hostile bids, the score Monday is three
abandoned, one renewed.
Abandoned, as you can see on New York Times Dealbook, are United Technologies Corp. pursuit of Diebold Inc., Vishay Intertechnology Inc.'s bid for International Rectifier Corp. and Waste Management Inc.'s tender for Republic Services Inc.
Ongoing is King Pharmaceuticals Inc.'s
bid for Alpharma a Inc.While each of these cases is a bit different, it's pretty clear that the extreme uncertainty in the financial markets makes hostile deals, with all their inherent uncertainties, a lot less attractive at the moment.
Ah, but what if the markets become more stable, yet stock prices stay historically low? Could those conditions set the stage for hostile opportunism by better capitalized companies seeking to absorb weaker rivals?
On Deal Journal Evan Newmark lists
four signs to watch for if you want to know when confidence is returning to the market.
Let's add a fifth: We'll know confidence is coming back when three more hostile bids are launched to take the place of those that ended Monday. -
Kenneth Klee
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Juergen Lasowski
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