Reuters - Video

Edition: US | UK | IN | CN | JP

video Business

Big deals on Wall Street

Monday, August 23, 2010 - 02:00

AUG 23 - A wave of merger and acquisition activity has grabbed Wall Street's attention and could signal a change in the economic climate. Bobbi Rebell reports.

▲ Hide Transcript

View Transcript

A wave of takeover offers has Wall Street taking notice. Hewlett-Packard is offering a 33% premium for data storage company three -- Dell's offer which was already at 87%. Premium. to seven point seven billion dollars Tom Burnett director of research at Wall Street access. Advertising of all these deals is no accident -- What's really combination of the corporate boardrooms . Seeing a light at the end of the tunnel in terms of global growth expectations. Tremendous amount of cash accumulated on the A wave of takeover offers has Wall Street taking notice. Hewlett-Packard is offering a 33% premium for data storage company three -- Dell's offer which was already at 87%. Premium. And fertilizer company potash is rejecting Australia's BHP Billiton offer a 39 billion dollars it says it's worth more. I just last week Intel announced its biggest acquisition ever. Agreed to -- security firm McAfee for close to seven point seven billion dollars Tom Burnett director of research at Wall Street access. Advertising of all these deals is no accident -- What's really combination of the corporate boardrooms . Seeing a light at the end of the tunnel in terms of global growth expectations. Tremendous amount of cash accumulated on the balance sheet of the top 1000 global companies. And the idea that a slow. Global growth environment. Earnings growth can best come from acquisitions and cost cutting because revenue growth is very hard to generate. The -- making these deals also have another game comment. Assistant professor of management -- cut Chaudhry of the Wharton school of business. If you look at the kinds of firms those that are making these deals they are the firms that have come away from the crisis. Relatively unscathed or at least in in better positions and how their counterparts. And so. This is indicative of those firms doing well and starting to see potential. Once we start seeing wider and -- activity picking up I think that'll be healthier sign of the entire economy recovering. As a result of which investors make you more confident. In other words while the -- activity has been seen as a positive for stocks it's still not enough to override this still big concerns about the economy. By the rebel Reuters.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Big deals on Wall Street

Monday, August 23, 2010 - 02:00