Flurry of M&A activity provides boost for UK managers

Analysis

Healthy balance sheets and the strength of the dollar drive merger and aquisition activity, with European companies targeted by North American buyers

UK equity fund managers are expecting to receive a welcome performance kick from M&A activity as the current wave of takeovers shows no signs of abating. The low cost of financing coupled with a stronger dollar has led many managers to expect bids for the companies they hold, especially from bidders across the pond. The dollar is already 4.8% higher against sterling this year and 11% up on the euro. Three-quarters of European investors expect to see an increase in M&A by mid-2011, according to a survey by IntraLinks and Mergermarket. Optimism in the US is even greater, with 91% of tho...