Ivey Business Journal, "Knowledge Jam: Three Disciplines to Beat the Merger Performance Odds"
In response to the recession’s toll on businesses, as well as the current low costs of capital and rising levels of cash, economists have been forecasting a surge in M&A activity. That such a surge was already gathering steam became apparent in the first 16 weeks of 2011, when Reuters carried a hefty 8,510 articles on M&A. In April, we stood on the brink of one of the most influential mergers in the financial markets: The potential combination of NYSE and the NASDAQ-Intercontinental Exchange (ICE) venture. According to an April 19, 2011 letter, the NASDAQ-ICE team was “deeply committed” to a merger with the NYSE. It had offered a 21 percent premium over Deutsche Boerse’s competing offer, acquired $3.8B in secured financing, $66M in voting NYSE securities, and made a $350MM reverse breakup promise.1 It all but provided the roses and chocolates. Well, almost. This article is in the Ivey Business Journal July/August, 2011 Issue.