Monday, June 14, 2004

Companies seeking "strategic alternatives" ...

Atleast 3 companies (it is pretty hard to keep track of all announcements here) in my list have announced publicly that they are seeking strategic alternatives, usually meaning that they are looking for buyers. Such an announcement is usually followed by a spike. Here is the list :

National Processing (NAP)
Intercept (ICPT)
MGM (MGM)

In the case of ICPT i had to wait for a long time to hear this good news, but in the other 2 cases the news came just a few days after i got them.

Separately, in the last 2 days Goldman Sachs and Credit Suisse Group have separately announced that they are recreating their M&A departments. This to me is a clear indication that someone is taking note of the pent-up demand.
While M&A activity in the banking / natural gas and to some extent health care/benefits sectors has been steady over the last 2 years, the expected tech M&A recovery is yet to occur. This may be the first indication that it is finally about to happen. I surely hope so.

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