Navigate this market better. Subscribe for FREE stock alerts and information.

Tuesday, April 5, 2011

Reuters Summit-Spin-offs to boost industrial dealmaking, (NYSE: MS)

A wave of split-ups and divestitures would boost dealmaking in the diversified industrials sector by creating potential takeover targets for larger rivals and private equity firms flush with cash. More diversified companies are aggressively reviewing their portfolios to boost growth in a slow economic rebound, spurring spin-offs and sales of non-core assets and opening the door for these newly created independent companies to be acquired, senior dealmakers said on Tuesday at the Reuters Global Mergers and Acquisitions Summit in New York. "M&A path is a solution of a lot of these companies ... As an M&A person, I get excited to see targets created," said Will Dotson, head of North American industrials group at Morgan Stanley. (MS.N)