With the markets in a swoon, marquee assets are on sale in the US. And, with the drop in the dollar, the valuations look even more compelling. Something else: the surge in commodities -- especially in oil -- is bulging the assets in mega sovereign wealth funds.
In fact, even US icons are under attack, such as Anheuser-Busch Companies Inc. (NYSE: BUD), which is fending off a hostile takeover from Belgium's InBev.
True, there is some good news. For example, our domestic companies will have an edge with exports (it seems that this has saved us from a recession -- at least so far). But, alas, it is little consolation.
Perhaps the most effective way to boost the value of the dollar is to increase interest rates. However, this will be a tough thing to do -- in light of the upcoming election, the housing sump and continued economic weakness.
In other words, US assets should remain cheap. And, foreign buyers can't ignore this. So, it's a good bet that we'll see more and more dealmaking from overseas.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
7-08-2008 @ 12:10AM
Raymond Barcelos said...
Are we seeing the selling of America to the highest bidders. The federal Reserve and many of the financial institutions of this country are responsible for what is happening to our country. Pretty soon we will bow down to the whims of countries who will profit from our demise. The decline and fall of the U.S. is under way and there's no savior looking to rescue us.