Mega stock exchange mergers expected to return
Tuesday, June 26, 2012
A recent report from The Wall Street Journal reveals that significant mergers in the stock exchange may see a comeback over the next several years.
With the recent surge of proposed-yet-incomplete mega mergers remain constant, they are beginning to put pressure on some bourses to come together, analysts and industry executives told the news source.
"If you look at the rationale for all of those proposed mergers, they're still in place," Execution Noble analyst Phil Dobbin told the news source. "You can have a global listings business, you can take out costs, you can check technology, you can have a dual listing, you can become a more attractive IPO venue - all of those reasons remain in place."
Adrian Farnham, chief executive of the London Stock Exchange Group PLC's pan-European trading business Turquoise, added the industrial logic that is exchange consolidation will continue to make sense as it does in the present.
A recently-completed merger has created the fourth-largest traditional outdoor advertising company in the United States. Private equity firms ACON Investments and MidOcean Partners announced the merger of their portfolio companies, Fairway Outdoor Advertising and Olympus Media, to create Fairway Media Group.
Investors should know how mergers affect the stock market and use discount brokers to their advantage.
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