Hickey and Walters (Bespoke) submit: This morning's WSJ Ahead of the Tape column discussed the large number of S&P 500 companies that are being taken private. The article went on to suggest that this money will find its way back into the market, which should be a positive.
We performed a similar analysis on S&P 500 companies that have formal takeover offers outstanding and listed them below. By our calculations there are currently 16 companies representing 1.6% of the market cap of the index. The Consumer Discretionary sector has seen the most interest in terms of number of takeover attempts, with six potential transactions representing 4.4% of the sector's market cap. The percentage number is second only to Utilities where the TXU (TXU) deal represents 6.0% of that sector's market cap.
It seems to us that somebody out there is not so negative on the consumer.