U.S. accounts for highest percentage of M&A since 2004

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U.S. Accounts for Highest Percentage of M&A since 2004

US target M&A totals $731.9 billion so far during year-to-date 2013, accounting for 46.7% of worldwide M&A activity the highest percentage of overall activity since 2004 (47.2%). Verizon Communications $130 billion offer for a remaining 45% stake in Verizon Wireless Capital pushed US deal making in the telecommunications sector to $166.2 billion, the strongest year-to-date period for US M&A in the sector since 2000. The telecom, healthcare, real estate and energy sectors account for 60% of US M&A activity so far this year, compare d to 48% last year at this time.

Bank of America Merrill Lynch tops the ranking of financial advisors for US target M&A, advising on six of the top 10 US deals this year. JP Morgan, which has advised on eight of the top 10 US deals ranks second followed by Goldman Sachs in third place.

Average Telecom High Yield Bond Tops $1 billion

Sprint Corp's $6.5 billion high yield corporate bond offering, which ranks as the second largest junk bond on record following Energy Futures Holdings $7.4 billion offering in October 2007, brings the volume of global high yield corporate debt to $308.4 billion for year-to-date 2013, an increase of 35% compared to a year ago. Average deal size in the telecom sector topped $1 billion for the first time since records began in 1980, bolstered by multi-billion offerings from Sprint, Intelsat and Metropcs Wireless among others.

Issuers in the financial, energy & power, industrial and telecom sectors account for 58% of global high yield debt so far this year. The top five high yield bond underwriters, led by JP Morgan, control 42%of the global new issuance this year, down from 47% during the same time last year.

China Follow-On Offerings Hit Record

This week's $5.7 billion follow-on rights offering from China Merchants Bank pushed the volume of follow-on offerings from Chinese companies to $33.2 billion for year-to-date 2013, a 33% increase compared to last year at this time and strongest year-to-date period for Chinese follow-ons on record. With 159 offerings so far this year, the number of China follow-ons has increased 52% compared to a year ago, also a record.

Goldman Sachs, which managed the China Merchants rights offering along with China International Capital, maintains a commanding top spot for China follow-on offerings, with 19.4% market share compared to 12.7% last year at this time. China International Capital and Guotai Junan Securities round out the top three, with 7.8% and 6.7% market share, respectively.

Source - Thomson Reuters

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