Hartford Courant – The corporate mergers-and-acquisitions business has been so strong during the first two months of 2006 that investment bankers are predicting a record year for deals.<\/p>\n
The year has already brought Boston Scientific Corp.’s $27.2 billion acquisition of Guidant Corp. and The Walt Disney Co.’s $7.4 billion purchase of Pixar Animation Studios Inc.<\/p>\n
Analysts attribute the increase in deals, in part, to heightened activism among investors such as hedge funds that are pushing companies to sell off unprofitable business units.<\/p>\n
Another factor is the long-held belief that buying a competitor is the fastest way to expand a company.<\/p>\n
“It is easier to buy something than build it from scratch,” said Andrea Pericli, a portfolio manager with Euclid Financial Group, a Washington, D.C.-based hedge fund.<\/p>\n