Year of M&A

According to Reuters global M&A activity is on target for a record year after a first-half surge.

 An increase in cross-border corporate mergers helped Europe
push past the United States in volume for the first time in four years, and
lifted the global tally of announced M&A in the first half by 51 percent to
$2.8 trillion, according to preliminary data released on Friday by research
firm Dealogic.

Global M&A was $1.9 trillion in the first half of 2006.

"It's undoubtedly going to be the biggest M&A
market ever (this year)," said Dag Skattum, JPMorgan Chase & Co.'s
global co-head of M&A.

But any full-year record could wind up heavily reliant on
the strong first half.

In the last month, takeover-related debt has become harder
to sell, fears of higher interest rates have grown, fallout from the U.S.
sub-prime mortgage woes has spread, private equity firms have come under
heavier fire and some leading buyout executives say leveraged deals have peaked.