M&A NEWS UPDATE: Which Way M&A in 1Q01?

Apr 02, 2001, 01:00 ET from Mergerstat LP

    LOS ANGELES, April 2 /PRNewswire/ -- First, the good news: Overall
 activity for U.S. and U.S. cross-border transactions rebounded in the first
 quarter of 2001, reversing the downward trend that began last year after the
 first quarter's record breaking run of 2,637 transactions.  Dealmakers
 couldn't match that feverish pace again, but the quarter's total of
 2,206 transactions was enough to surpass the 2,137 transactions recorded in
 the fourth quarter of last year.
     Cross-border activity continued to make up a larger percentage of overall
 activity as dealmakers reported a new high of 675 transactions in the first
 quarter of 2001.  Foreign buyers of U.S. companies posted a record
 335 transactions, easily surpassing the 228 acquisitions of the fourth quarter
 and the 302 transactions of the first quarter of 2000.  Meanwhile, U.S. buyers
 nabbed 340 companies outside of their borders, topping the 233 total reported
 in the fourth quarter of 2000, but falling just short of the 353 acquisitions
 announced in the first quarter.
     Now for the bad news: While M&A activity for the first quarter of 2001 was
 up over the fourth quarter of last year, it appears that the trend may not
 extend to the second quarter of 2001.  Monthly activity for the first quarter
 showed a steady decline.  Dealmakers reported 683 transactions in March, down
 from 740 in February and 783 in January 2001.  The M&A market also reported
 declines in some of the market's most active industries during the quarter.
 The Drugs, Medical Supplies & Equipment industry (56 transactions, compared to
 88 in 4Q00) recorded the largest drop in announced deals in the first quarter
 of 2001, followed by the Computer Software, Supplies & Services industry
 (509, compared to 524), the Electronics industry (47, compared to 61), the
 Retail industry (84, compared to 97), and the Banking & Finance industry
 (63, compared to 72).
     What's more, deal value for U.S. and U.S. cross-border transactions fell
 to its lowest level since the first quarter of 1998.  Dealmakers disclosed
 just $188.3 billion during the first three months of 2001, compared to
 $267.3 billion in the fourth quarter of 2000 and $339.2 billion in the first
 quarter of 2000.  Megadeals, or transactions valued at $1.0 billion or more,
 fell to $119.6 billion, compared to $198.8 billion in the fourth quarter of
 2000 and $357.4 billion in the first quarter of last year.
     Yet despite the overall drop in transaction values, dealmakers managed to
 sign several blockbuster agreements during the quarter.  The U.K.'s Prudential
 Plc signed a $24.3 billion agreement to buy American General Corp; Johnson &
 Johnson struck a $12.3 billion agreement to acquire ALZA Corp;
 Switzerland-based Nestle SA agreed to acquire Ralston Purina Co for
 $10.5 million; Tyco International Ltd agreed to purchase The CIT Group Inc for
 $9.2 billion; and Phillips Petroleum Co signed a $6.7 billion agreement to
 acquire Tosco Corp.
 
     *  All aggregate dollar figures in this press release are derived at using
        base equity numbers.
 
     ** Deal totals and deal value numbers contained herein are subject to
        change due to canceled transactions and disclosures of transactions in
        1Q01 made after the writing of this press release.
 
     Mergerstat LP tracks mergers and acquisitions involving U.S. business
 entities excluding the exchange of business assets, private placements,
 spin-offs and open-market transactions.  Mergerstat offers its research and
 analysis electronically through xls.com, FactSet.com and through Bloomberg and
 Lexis-Nexis.
 
     FOR PRESS INQUIRIES, CONTACT SUSAN MADDELA AT 310-712-6575.  UPON REQUEST,
 MEMBERS OF THE PRESS MAY OBTAIN A SPREADSHEET OF M&A ACTIVITY OF THE FIRST
 QUARTER OF 2001.
 
     FOR DAILY TRANSACTION INFORMATION, FINANCIAL AND LEGAL ADVISOR
 INFORMATION, AND A WIDE RANGE OF M&A TABLES AND CHARTS ON THE FIRST QUARTER OF
 2001, LOG ON TO WWW.MERGERSTAT.COM.
 
     TO PURCHASE MORE DETAILED INFORMATION ON M&A TRANSACTIONS IN THE FIRST
 QUARTER OF 2001, CONTACT MERGERSTAT AT 1-800-455-8871.
 
 

SOURCE Mergerstat LP
    LOS ANGELES, April 2 /PRNewswire/ -- First, the good news: Overall
 activity for U.S. and U.S. cross-border transactions rebounded in the first
 quarter of 2001, reversing the downward trend that began last year after the
 first quarter's record breaking run of 2,637 transactions.  Dealmakers
 couldn't match that feverish pace again, but the quarter's total of
 2,206 transactions was enough to surpass the 2,137 transactions recorded in
 the fourth quarter of last year.
     Cross-border activity continued to make up a larger percentage of overall
 activity as dealmakers reported a new high of 675 transactions in the first
 quarter of 2001.  Foreign buyers of U.S. companies posted a record
 335 transactions, easily surpassing the 228 acquisitions of the fourth quarter
 and the 302 transactions of the first quarter of 2000.  Meanwhile, U.S. buyers
 nabbed 340 companies outside of their borders, topping the 233 total reported
 in the fourth quarter of 2000, but falling just short of the 353 acquisitions
 announced in the first quarter.
     Now for the bad news: While M&A activity for the first quarter of 2001 was
 up over the fourth quarter of last year, it appears that the trend may not
 extend to the second quarter of 2001.  Monthly activity for the first quarter
 showed a steady decline.  Dealmakers reported 683 transactions in March, down
 from 740 in February and 783 in January 2001.  The M&A market also reported
 declines in some of the market's most active industries during the quarter.
 The Drugs, Medical Supplies & Equipment industry (56 transactions, compared to
 88 in 4Q00) recorded the largest drop in announced deals in the first quarter
 of 2001, followed by the Computer Software, Supplies & Services industry
 (509, compared to 524), the Electronics industry (47, compared to 61), the
 Retail industry (84, compared to 97), and the Banking & Finance industry
 (63, compared to 72).
     What's more, deal value for U.S. and U.S. cross-border transactions fell
 to its lowest level since the first quarter of 1998.  Dealmakers disclosed
 just $188.3 billion during the first three months of 2001, compared to
 $267.3 billion in the fourth quarter of 2000 and $339.2 billion in the first
 quarter of 2000.  Megadeals, or transactions valued at $1.0 billion or more,
 fell to $119.6 billion, compared to $198.8 billion in the fourth quarter of
 2000 and $357.4 billion in the first quarter of last year.
     Yet despite the overall drop in transaction values, dealmakers managed to
 sign several blockbuster agreements during the quarter.  The U.K.'s Prudential
 Plc signed a $24.3 billion agreement to buy American General Corp; Johnson &
 Johnson struck a $12.3 billion agreement to acquire ALZA Corp;
 Switzerland-based Nestle SA agreed to acquire Ralston Purina Co for
 $10.5 million; Tyco International Ltd agreed to purchase The CIT Group Inc for
 $9.2 billion; and Phillips Petroleum Co signed a $6.7 billion agreement to
 acquire Tosco Corp.
 
     *  All aggregate dollar figures in this press release are derived at using
        base equity numbers.
 
     ** Deal totals and deal value numbers contained herein are subject to
        change due to canceled transactions and disclosures of transactions in
        1Q01 made after the writing of this press release.
 
     Mergerstat LP tracks mergers and acquisitions involving U.S. business
 entities excluding the exchange of business assets, private placements,
 spin-offs and open-market transactions.  Mergerstat offers its research and
 analysis electronically through xls.com, FactSet.com and through Bloomberg and
 Lexis-Nexis.
 
     FOR PRESS INQUIRIES, CONTACT SUSAN MADDELA AT 310-712-6575.  UPON REQUEST,
 MEMBERS OF THE PRESS MAY OBTAIN A SPREADSHEET OF M&A ACTIVITY OF THE FIRST
 QUARTER OF 2001.
 
     FOR DAILY TRANSACTION INFORMATION, FINANCIAL AND LEGAL ADVISOR
 INFORMATION, AND A WIDE RANGE OF M&A TABLES AND CHARTS ON THE FIRST QUARTER OF
 2001, LOG ON TO WWW.MERGERSTAT.COM.
 
     TO PURCHASE MORE DETAILED INFORMATION ON M&A TRANSACTIONS IN THE FIRST
 QUARTER OF 2001, CONTACT MERGERSTAT AT 1-800-455-8871.
 
 SOURCE  Mergerstat LP