Companies are cheap right now — and another M&A boom might be just around the corner. It’s encouraging to see banks in a more pivotal role given their previous unwillingness to lend. A renewed appetite for risk in the financial sector is exactly what the economy needs to get liquidity flowing again. Let’s hope it continues. Here’s a detailed look from the WSJ:
It’s back to the future in the volatile world of takeover finance. After years in which companies and private-equity groups sought deal financing from a variety of investors, spawning an array of exotic securities, banks are back at center stage. When Kinder Morgan Inc., an energy pipeline operator partially owned by private-equity firms, needed $13 billion to help fund the $21.1 billion takeover of its biggest rival, El Paso Corp., earlier this month, it didn’t turn to the bond markets or other investors but to a group of banks led by Barclays PLC….
Read the entire article at the Wall Street Journal. (Subscription required.)