OECD expects international M&A deals to fall by 56% in 2009

The Organization for Economic Cooperation and Development (OECD) said it expects international mergers and acquisitions (M&As) to fall by 56% this year compared with 2008, the largest year-on-year decline since 1995, reports PTI.

The estimate is based on OECD's analysis of data for international M&A activity up to 26 November 2009, OECD said in a report.

The fall was largely due to the 60% decline in the value of cross-border M&As by companies based in the OECD area, to $454 billion in 2009 from over $1 trillion in 2008, it said.

However, this phenomenon was also due to the first sharp declines in M&A activity in major emerging economies—international M&A activity by companies based in Brazil, China, India, Indonesia, Russia, and South Africa fell by 62% to $46 billion in 2009 from $121 billion in 2008.

M&A activity in these countries is forecast to fall by almost 40% this year to just over $80 billion from just under $140 billion in 2008, the organisation said.

Speaking at the recent opening of the OECD Global Forum on Investment in Paris, OECD secretary general Angel Gurria said that governments needed to “do more” to promote business investment.

"Against the backdrop of a fragile global economy and sharp declines in international investment activity that have now spread to the emerging economies, the international investment policy community cannot afford to relax," Mr Gurria said.
 

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    Investor Interest   Exclusive
    Osian Art Fund to be redeemed

    Even after the end of the deadline for redemption, investors of the Osian Art Fund continue to await full redemption. Unit-holders have received another note from Osian officials stating that the remaining amount would be paid to them in two instalments.

     
    Investors in the art fund had recently received a part-payment of the redemption amount. While investors claimed that they had received only 75% of the total amount, company officials stated that the payment amounted to 90% of the capital invested in the Fund.
     
    Today, a day later than the deadline for redemption (as per Osian officials), notes were sent across to unit-holders stating that the payment would be made in two instalments. The note said that all unit-holders would have received 85% of their investment (in addition to the earlier 5% dividend). This payment will be made in eight to 10 days, said the note.
     
     The remaining capital and income will be distributed in 10 to 12 days thereafter, according to the company.
     
    Neville Tuli, chief advisor, Osian Art fund, in one of his earlier mails to Moneylife had stated, “As per redemption guidelines, this process has up to 10 December 2009 to complete its obligations. However, we expect to complete all these formalities much quicker.”
     
    Osian's-Connoisseurs of Art Private Ltd, a leading archive and auction house, had announced the art fund in July 2006. The art fund was a close-ended scheme for a period of thirty-six months. Investors in the Fund have been disappointed earlier with low returns, with a net assert value (NAV) of Rs112 and now they have to put up with delayed and part-payments.
     
     
     
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    Women’s absence led Lehman’s death

    According to Naissance Capital, a socially-responsible Swiss hedge fund women help prevent the ‘The Julius Caesar Problem’ whereby an ‘Alpha Male CEO’ ‘bends the rules, cheats if necessary' and 'eventually causes the company's destruction.’ They even claim that gender diversity ‘can guard against six sigma events, ie AIG, Lehman.’

    Read Article
     

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    COMMENTS

    R.Balakrishnan

    10 years ago

    Utter crap. Martha Stewart bombed. Sundaram Finance does not employ women (at least till mid 90's) and does well.Absolutely no co-relation.

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