Institutional investors want more technology for merger arbitrage
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.
About Bloomberg Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength–delivering data, news and analytics through innovative technology, quickly and accurately- -is at the core of the Bloomberg Professional service, which provides real time financial information to more than 300,000 subscribers globally. Bloomberg’s enterprise solutions build on the company’s core strength, leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. Through Bloomberg Law, Bloomberg Government and Bloomberg New Energy Finance, the company provides data, news and analytics to decision makers in industries beyond finance. And Bloomberg News, delivered through television, radio, mobile, the internet and two magazines, Bloomberg Businessweek and Bloomberg Markets, covers the world with more than 2,300 news and multimedia professionals at 146 bureaus in 72 countries. Headquartered in New York, Bloomberg employs more than 12,900 people in 166 locations around the world.
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