NEW YORK, Jan 6 (Reuters) - The torrid rate of mergers and acquisitions is expected to increase in 1998 as companies with strong cash
flows and buoyant shares seek revenue growth and economies of scale, among other motivations, according to PaineWebber Group Inc
[NYSE:PWJ - news] strategist Edward Kerschner.
Kerschner identified dozens of potential acquisition candidates in a report released this week and singled out 31 rated PaineWebber
''attractives'' or ''buys,'' including America Online Inc (NYSE:AOL - news), Digital Equipment Corp (NYSE:DEC - news) and
Schering-Plough Corp (NYSE:SGP - news).
In addition the economic scale, the M&A market will be stoked further by companies looking for broader market scope to offer ''one-stop
shopping'', vertical integration, new technologies, hard-to-duplicate assets, stronger competitive defenses, international expansion and
responses to deregulation, according to Kerschner.
The remaining companies rated favorably by PaineWebber and listed as potential takeover candidates are: AirTouch Communications
(NYSE:ATI - news), Alkermes Inc (Nasdaq:ALKS - news), Arvin Industries Inc (NYSE:ARV - news), Bay Networks Inc (NYSE:BAY -
news), Bemis Co Inc (NYSE:BMS - news) and Century Telephone Enterprises Inc (NYSE:CTL - news).
-- POSSIBLE LOST DATA --
\000 Further, Knight-Ridder Inc (NYSE:KRI - news), MCN Energy Group Inc [NYSE:MCE - news]
(NYSE:MCN - news), Money Store Inc (NYSE:MON - news), New York State Electric and Gas Corp (NYSE:NGE - news), Nextel
Communications Inc (Nasdaq:NXTL - news), Nipsco Industries Inc (NYSE:NI - news) and Nuevo Energy Co (NYSE:NEV - news).
Additionally, PriCellular Corp (AMEX:PC - news), Sofamor Danek Group Inc (NYSE:SDG - news), Sonat Inc (NYSE:SNT - news), St.
Jude Medical Inc (NYSE:STJ - news), Sunbeam (NYSE:SOC - news), Texas Biotechnology Corp (AMEX:TXB - news), Unocal Corp
(NYSE:UCL - news), Vantive Corp (Nasdaq:VNTV - news) and Veritas DGC Inc (NYSE:VTS - news). |
