Corporate M&A war chest: cash & treasury sharesHoward Silverblatt
S&P Industrials (old) Cash Increases in short-term investments drove the Cash & Equivalent accounts (cash, short term investments, and securities -> all in the current asset account) to a record high in Q2. Now that the Qs are in, it appears that the final values are even higher than the initial reports. A good deal of the money is due to situations, such as PFE’s $14.6B increase from an offering pending the WYE meager, or the WLP $14.8B ‘Investments available-for-sale, at fair value’. However, the values have climbed considerably over the quarter, with cost cutting adding to the nest egg. While the initial cash build-up was the result of a gun-shy management which needed to be able to ride the recession out, the levels now represent a large war chest for potential M&A activity. PFE added $14.6B Short-term investments (ST) WLP added $13.0B ST MRK added $6.4B Cash & Equivalent (CE), with $2.1B coming from ST T added $3.5B CE Energy reduced CE $10.1B, while Health Care increased CE $10.4B and ST $35.2B
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