Patrick,
What are you doing speaking in plain English?<g> Yes, that accurately describes the action since Monday. I believe the TAs call it a downtrend? ;^0
On another note, here's an interesting survey of M&A activity in the Tech sector conducted by Arthur Andersen. If Ancor gets their 20MM shares voted in, they could be loaded for bear.
biz.yahoo.com
Thursday May 7, 3:24 pm Eastern Time
Company Press Release
Arthur Andersen Surveys Merger and Acquisition Activity at The Red
Herring's 1998 Venture Market West Conference
Venture Capitalists and Entrepreneurs Predict Competitive Forces and the Demand for Innovation Will Continue to Drive M&A Activity in the Technology Industry
MONTEREY, Calif.--(BUSINESS WIRE)--May 7, 1998-- In a survey conducted by Arthur Andersen's Technology Industry Practice during The Red Herring's Venture Market West conference earlier this week, findings showed that merger mania continues to fuel the technology industry. Attendees surveyed cited access to new technologies and human resources as the most compelling factors motivating technology companies to engage in M&A activity, referring to the industry's notorious ''speed to market'' demands and its overall scarcity of skilled human capital.
''Responding to the growing trend in the technology industry, we chose to focus our survey on mergers and acquisitions, to gain insight into the deal makers' and entrepreneurs' strategies behind this exit option,'' said Mark Jensen, technology industry director for Arthur Andersen's Technology Industry Practice. ''Venture Market West gathers an exclusive crowd of Silicon Valley's most influential players. It is from these individuals that we are able to get a sense of the driving forces in the technology marketplace and to learn what truly motivates technology companies to reinvent themselves.''
Arthur Andersen, headline sponsor of Venture Market West, polled attendees at The Red Herring's most highly acclaimed deal-making conference, held at the Monterey Plaza Hotel in Monterey, Calif.. Venture Market West is The Red Herring's flagship event, attracting key technology leaders, financiers, venture capitalists, and business development executives to evaluate the technology industry's rising stars.
This year, the show featured financial gurus, Bill Gurley of Hummer Winblad, Frank Quattrone of DMG Technology Group, Leslie Vadasz, Corporate Business Development, Intel Corporation [Nasdaq:INTC - news], and Dan Case of Hambrecht & Quist. During his keynote address, Frank Quattrone specifically commented on the growing number of companies looking to be acquired: ''In 1983, we saw $4 billion worth of merger and acquisition deals. By contrast, in 1997, we saw $50 billion in M&A deals.''
The survey uncovered keen insights into the industry's increasing predilection toward mergers and acquisitions, finding that the
pressure on companies to maintain their leading edge often leads them down the M&A path. Additionally, the survey showed that venture capitalists are increasingly looking to the benefits of a merger or acquisition as an alternative to gaining liquidity through an IPO. Venture capitalists are trading off higher valuations, realized through an IPO for the faster liquidity and lower risks, associated with a merger transaction. Respondents stressed that risk is significantly lessened for an early stage company when they are acquired, as they are immediately given access to established distribution channels and corporate infrastructure. Likewise, public companies benefit from instantly expanding their capabilities, enhancing their competitive position, and capitalizing on growth opportunities. The most commonly noted risk factor in M&A deals was cultural fit and personnel retention, further illustrating that deals are not just about financial implications.
''The survey confirms that respondents see M&A as a way to gain immediate access to research and development,'' said Jim Cegelski, Arthur Andersen's Managing Partner of the Technology Corporate Finance Group. ''This also allows companies to take advantage of the favorable financial reporting treatment provided by pooling of interest transactions or the in-process R&D charge used in purchase transactions.''
The M&A Outlook
In other results, conference attendees overwhelmingly anticipated that the Internet, electronic commerce, software, and networking/telecommunications segments of the technology industry will experience the most consolidation in the future. In line with this finding, respondents to the survey chose Cisco and Microsoft as the two technology companies currently executing the best M&A strategies.
Arthur Andersen's survey offers a good indication from the entrepreneurial and investment community perspective that M&A's will continue to fuel the technology industry's growth as merged companies help each other to redefine their business models and extend their market reach. |
