Institutional investors want more technology for merger
New York — Mergers and acquisitions will remain strong in 2011
because of an abundance of attractive targets and valuation,
Bloomberg Tradebook® executives said today, revealing the
results of a survey of leading institutional investors.
More than 150 buy-side and sell-side executives attended
Bloomberg Tradebook’s conference, “Mergers & Acquisition Outlook
in the New Economy,” held at Bloomberg LP’s headquarters in New
York, where the poll was conducted.
“Mergers and acquisitions continue to increase,” said Ray
Tierney, Bloomberg Tradebook’s President and Chief Executive
Officer. “We have seen a jump of more than 115 percent in M&A
trading in just the first quarter of this year.”
The abundance of attractive targets and valuations will be the
primary drivers of M&A activity in 2011, according to 35 percent
of those surveyed. Other key factors include increasing
competition (19 percent) and the difficulty/ease of securing
deal financing (15 percent).
Other Bloomberg Tradebook survey questions included:
-Who will take over the New York Stock Exchange (NYX)? Of those
surveyed, 48 percent said Deutsche Boerse, 24 percent said
Nasdaq OMX and ICE and 28 percent said neither.
-What do you expect to be the major source of capital for M&A
deal financing in 2011? Equity financing (22 percent), Debt
financing (34 percent) and Internal cash reserves (42 percent)
-Are you looking for technology to improve your execution of
merger arbitrage and pair strategies? Of those polled 65 percent
said yes, 12 percent said somewhat and 21 percent said no.
-Do you have access to research that helps them recognize and
take advantage of M&A opportunities? Of those surveyed, 63
percent said no or somewhat, while 36 percent said yes.
Leading the event were Bloomberg Tradebook’s Tierney and Tom
Keene, host of Bloomberg Surveillance and Surveillance Midday.
Cristina Alesci of Bloomberg TV moderated a panel discussion
featuring Andrew Bednar of Perella Weinberg Partners, Chinh Chu
of The Blackstone Group and Marc Lipschultz of KKR.
About Bloomberg Tradebook
Bloomberg Tradebook is Bloomberg’s agency broker that partners
with both the buy-side and sell-side to provide high-quality
liquidity, market insight, and customized solutions based on
innovative technologies. Founded in 1996, Bloomberg Tradebook
offers its customer base trading solutions for equities,
futures, options, and foreign exchange (FX) to actively manage
complex trading strategies in more than 70 global markets.
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