Feeding Frenzy On The Continent

From the spires of the City of London to the glass towers of Frankfurt, dealmakers are dusting off their battle plans. After a two-year lull, Europe is suddenly seeing a surge of buyouts and mergers in industries ranging from cement to banking (table). "I've never picked up so much business in such a short period of time," says Dante Razzano, managing director for Morgan Grenfell Italia in Milan. In the past two weeks, he has received orders from five companies to sell off divisions.

As Europe tears down the remaining barriers to cross-border takeovers, well-heeled players are ready to pounce. With an eye toward slugging it out with Japanese and American rivals, European executives have become almost fanatical about building up their core businesses. As a result, the new acquisitions drive seems destined to lead to far greater industrial competition than previous wheeling and dealing.