Americans Sold Out to Foreign Firms at Record Quarterly Rate

[swag]

Source: Bloomberg

Jan. 3 (Bloomberg) -- Foreign investors exploited the declining U.S. dollar during the past three months to snap up American companies at the fastest pace in at least a decade.

Buyers from Dubai to the Netherlands accounted for 46 percent of the $230.5 billion of U.S. mergers and acquisitions announced in the fourth quarter, the biggest share since 1998 when Bloomberg started compiling the data. The total excludes $17.9 billion of so-called passive investments by state-run funds in Asia and the Middle East in U.S. banks, including New York-based Citigroup Inc.

The influx of overseas buyers cushioned a drop in domestic deals, as tighter credit markets ended the leveraged buyout boom that spurred record-setting takeovers in the first half 2007. Foreign acquirers, who stepped in as the dollar fell 10 percent against the euro last year, show no sign of losing interest, according to bankers and lawyers.


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a7SxhXzLk6tI&refer=home

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Poster's comment: I'm really not opposed to what's reported at all. Given demographic and economic trends, it's natural, necessary, even desirable that investors from other nations buy US assets.

Also, I enjoy posting shit like this because it drives a certain class of nativist (many nominally "Republican," some nominally "Democrat") crazy.

[Esra Star]

1. Yes, I would read it as a very healthy thing as well.. nt

[cornermouse]

2. How nice for you all...

I know I certainly enjoy seeing the price of various items including land and homes being driven up beyond what I can afford to pay. :eyes:

[DCKit]

3. Wait until they find out that the assets of all those companies were raided...

to cover outrageous bonuses and stock options for the executives.

[swag]

4. It would be ironic if corporate governance were restored by foreign investors.

[DCKit]

5. I (we) could probably handle that kind of irony.

And an excellent point. Somehow I don't think the reserved corporations of Europe and the Middle East are going to pay the insane salaries, stock options and golden parachutes upper management of American companies have come to expect as a fundamental right.

Haha, they are so screwn.

[RuleOfNah]

7. Outsourcing management.

I think this is the logical conclusion of the externalities movement. Management is one of the last remaining outsourcing holdouts. Foreign M&A the first step in their transition.

[Acadia Blue]

8. It will never happen. They will be worse that USA owners.

[bemildred]

6. Good. maybe it will lead to better management.

God knows the products of our business schools are useless.