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M&A Lessons from 2008: Take the Money and Run

The challenge this year is no one is willing to start the bidding price out of fear. Yet when the merger offers do start, they will fly. At that point many takeover candidates will be low balled and they will probably accept the offer. Shareholders will get a pitance because managements will be itching to show a capital gain in stock at almost any price. The positive of it all is a lot of inventory taken off the market, thereby creating greater demand ( hopefully ) for the quality stocks that remain.