MRIN - The Bristol-Myers Celgene Deal And Other Ideas
by Daniel Shvartsman
It's a cliche to say mergers and acquisitions (M&A) are a sign of 'animal spirits'. It's an old John Maynard Keynes saying, and not literally tied to M&A. I take the cliched usage to mean that if companies are confident enough to splash cash at a premium to whatever the market is paying, that is a sign that there is broader confidence in the market, which can become self-fulfilling (as are so many things in economics).
But I think there's also an effect of animal spirits. It's exciting to consider new combinations,