How Global Wave of Mergers Hits Candidates, Consumers

By David R. Francis writer of The Christian Science Monitor | The Christian Science Monitor, September 25, 2000 | Go to article overview

How Global Wave of Mergers Hits Candidates, Consumers


David R. Francis writer of The Christian Science Monitor, The Christian Science Monitor


The United States - and for that matter the world - is going through the biggest wave of corporate mergers and acquisitions in history. In the process, the American economy is being drastically restructured. And there's more to come, the experts say.

Is that good or bad?

You aren't hearing any real debate about the merits of this extraordinary trend in the presidential campaign. Though mergers are affecting millions of Americans, the topic is not considered a vote- grabber.

Neither Vice President Al Gore nor Texas Governor George W. Bush have offered a detailed plan for dealing with the increased concentration of economic power.

So far, it appears that Mr. Gore is an adherent of the Clinton administration's relatively strong antitrust policy.

But Mr. Bush is more of a mystery. Will he follow the somewhat less-tough policy of his dad, former President Bush, or the laissez- faire policy under the Reagan administration?

Albert Foer, president of the American Antitrust Institute, a Washington think tank, wonders if Bush has "a strong but secretive attitude" on antitrust policy which might come out after the election. It would be revealed in his appointment of chiefs of the Justice Department's antitrust division and the Federal Trade Commission (FTC), the two antitrust watchdogs in the US.

[Joel Klein, head of the antitrust division, last Tuesday announced his resignation. He has been chief architect of the case against Microsoft Corp.]

Yet the impact of mergers on business competition is crucial.

"An enlightened antitrust policy is essential to the vitality of the innovative companies which provide the foundation for American prosperity," says Peter Morici, an economist at the University of Maryland's business school, in College Park.

"We have got a merger a day now," says Paul Juhasz, of Thomson Financial Securities Data, a Newark, N.J. firm that keeps track of the data.

That's an understatement. Thomson's own data show there have been 7,583 deals so far this year of companies valued at a total of $1.34 trillion. By year end, 2000 could break the 1998 $1.6 trillion record.

In the financial area alone, there have been $494 billion in takeovers and mergers this year.

"Sooner or later it is going to have to slow down or we are going to have one big company [on Wall Street]," says Mr. Juhasz.

In total, there have been $6.5 trillion worth of deals in the US since 1995, $12 trillion worldwide.

In comparison, the total output of goods and services in the US this year will amount to almost $10 trillion. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

How Global Wave of Mergers Hits Candidates, Consumers
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.