In the Aspen real estate market, there is historical truth to the statement, “As the stock market goes, so goes local real estate”…(editor)
[Confidence came roaring back this week with the annoucement of four large mega-deals: the private $24 Billion buyback of Dell to take the company private, Warrens Buffet and Brazilian investors $23 Billion deal to buy HJ Heinz, John C. Malone’s Liberty Global’s purchase of Virgin Media and American Airlines merger with US Airways.]
WALL STREET …A confluence of factors has driven the recent deals. Most visibly, the stock market has been on a tear, with the Standard & Poor’s 500-stock index this week briefly hitting its highest levels since November 2007. Higher share prices have buoyed the confidence of chief executives, who now, instead of retrenching, are looking for ways to expand their businesses. A number of clouds that hovered over the markets last year have also been removed, eliminating the uncertainty that hampered deal making. Mergers and acquisitions activity in 2012 remained tepid as companies took a wait-and-see approach over the outcome of the presidential election and negotiations over the fiscal cliff. The problems in Europe, which began in earnest in 2011, shut down a lot of potential transactions, but the region has since stabilized.
By Peter Lattman, Feb. 14, 2013 NYT
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