Merger and acquisitions activity is expected to grow in 2011 because largest companies have amassed almost $3 trillion of cash on their balance sheets, according to Thomas Sandell, New York-based founder of Sandell Asset Management.
The 1,000 largest companies by market value worldwide have amassed about $2.87 trillion in cash and equivalents (a figure excluding financial services firms), he says. This, coupled with the low interest rate environment, has made it ripe for M&A activity.
These improving market conditions have prompted Sandell AM to consider launching a second UCITS fund focusing on special events next year.
Thomas Sandell founder of Sandell Asset Management.
Swedish-born Sandell says deal activity had a slow start to 2010. He says: “There is a lot of cash on corporate balance sheets. Historically low interest rates