Tuesday, January 04, 2005
Benefits of M&A
Noting big deals of 2004 (Kmart-Sears, Sprint-Nextel, Exelon-Public Service Enterprise, Oracle-PeopleSoft, Symantec-Veritas, IBM-Lenovo, LNM-ISG) BusinessWeek (Jan 10, 05) writes about the benefits of M&A:
Corporate deals are essential to the workings of the US economy. They wipe out excess or obsolete capacity, allow companies to adjust to changing market realities, and even balance out trade deficit, as foreign companies buy US outfits. The willingness to do big deals and reposition corporate assets reflects the flexibility of the US economy - one key reason why the US was able to adapt so quickly to the Information Revolution of the 1990s.
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