Reuters – Companies and private investors flush with record amounts of cash will take advantage of persistently low interest rates and spur increased merger activity next year, according to a newforecast from PricewaterhouseCoopers.
The companies in the Standard & Poor’s 500 index and the 50 biggest private equity firms have $1.9 trillion in combined cash, about 8.5 percent more than they did at the end of last year, PwC said.
That cash glut, combined with easy access to debt, the need for companies to build revenue while cutting costs, and even more interest in takeovers from hedge funds could make for a big 2006.
