What to make of the merger market

There have been signs of life in the merger market as of late. The big drug and technology deals have people talking about the rise of strategic deals--just in time to save the market. But that could be wishful thinking. Bloomberg says the merger market in 2009 may be "the slowest since 2003." Which would be bad for the top banks.

Still, there are signs that more companies may be thinking about striking deals later this year. Bloomberg notes that the likes of Intel and Cisco are boosting their cash "war chests" via stock and bond offerings. So bankers will be plenty busy. This is a time to build the relationships that will lead to future fees. For the top banks, the focus is on maintaining their turf as advisors. The boutiques seem newly energized and are stocking up on talent. It remains to be seen how aggressive they will be. Could some fee cuts be in the offing? 

For more:
- here's the article

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