Lolly jar for M&A activity

  1. 10,486 Posts.
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    Certain segments of the ASX are starting to look like the proverbial "candy store for a kid" for large offshore funds...

    Some appeal for mergers and some appeal for acquisitions but if they get it the wrong way around they could go pear shape very quickly or if they use the wrong financial instruments it could sink them forever. Equity swaps and pre-paid long term debt funding are two of my favourite tools.

    It would be good to see some of the aussie companies use offshore funding to shore up their own growth, scale and international presence. A contrarian view may need to be taken and that will fly in the face of most domestic financiers given our conservative financial markets and constrained superannuation funds.
 
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