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Today, It Was All About M&A

28 April 2014 by HCM

The week-end did not bring any major piece of news regarding the situation in Ukraine, and investors decided to remain on the side lines. A good portion of them were just back from their Easter break, and they were probably glad for that opportunity to catch up with the market. So, during a session which felt pretty dull, it is not very surprising to see that the outliers are involved one way or the other in the recent flurry of M&A activity. In Europe, ALOFP (Alstom SA) ‘s risk premium was almost 20bps tighter as the bid from GE (General Electric Company) has not been rebuked by the French government. In the US, TWC (Time Warner Cable Inc) ‘s 5 year CDS was 8bps tighter after CMCSA (Comcast Corporation) announced they will sell customers to ease the path of the TWC deal. And at the other end of the spectrum, NEM (Newmont Mining Corp) ‘s 5 year CDS was 30bps wider after they ended merger talks with ABX (Barrick Gold Corp).