SOURCE: Thomson Reuters Corporation

April 06, 2010 13:21 ET

Thomson Reuters Releases First Quarter 2010 Global Investment Banking Reviews

LONDON and NEW YORK, NY--(Marketwire - April 6, 2010) -

M&A Volumes in US and Asia Drive Activity This Quarter as IPOs See Best Q1 in a Decade

London, New York, 6 April 2010 - Thomson Reuters has released the final first quarter 2010 (Q1 2010) global reviews for mergers & acquisitions and capital markets activity.

The value of globalmergers & acquisitions (M&A) totaled US$573.3bn during the first quarter of 2010, a 20.5% increase from first quarter 2009 levels and the strongest opening quarter for M&A since 2008. First quarter M&A activity is down just 5% from the fourth quarter of 2009, which saw US$601.5bn in deals. M&A involving emerging market companies totaled US$182.1bn during Q1 2010, more than double the activity announced during the first quarter of 2009 and accounting for 33% of global activity for the quarter. Private-equity backed M&A activity totaled US$32.4bn during the first quarter of 2010, the largest opening period since the first quarter of 2008. The quarter's volume is an increase of 89% compared to the first quarter of 2009. Goldman Sachs is the lead adviser for global M&A with US$151.5bn in deals advised.

Equity capital markets (ECM) activity totaled US$167.5bn for first quarter 2010, a 138% increase over first quarter 2009 when new issuance totaled US$70.4bn. This quarter marks the best annual start for global equity capital markets activity since the first quarter of 2007. Global follow-on offerings totaled US$101bn, accounting for 60% of overall activity this year and registering a 63% increase over the first quarter of 2009. The market for global initial public offerings saw its strongest opening quarter for new listings since 2000 with US$46.4bn in issues, bolstered by multi-billion dollar offerings from companies in the BRIC regions which account for 49% of IPO volume this year. JP Morgan led all equity capital markets underwriters for the second consecutive year with US$14.8bn in proceeds from 82 issues.

Overall global debt capital markets (DCM) activity totaled US$1.5tr during the first quarter of 2010, a 10% decrease over last year when volume reached US$1.7tr. First quarter activity is up on a consecutive basis, with a 37% increase over the fourth quarter of 2009. The volume of global corporate high yield debt reached US$75.5bn during first quarter 2010, breaking all quarterly records for corporate high yield debt issuance. Debt capital markets activity from Asia Pacific issuers, the only region to see positive year-over-year gains, increased 2% compared to first quarter 2009 totals. Bank of America Merrill Lynch is the lead bookrunner to global DCM issuance, with US$132bn in underwriting and 8.6% of the market.

Global syndicated lending activity continued to decline, with first quarter volume standing at US$460.6bn. Of this total, US$403bn, or 87%, saw wider syndication, while the remaining US$57.6bn were structured as club deals. Proceeds from the Americas comprised 39.7% of total first-quarter syndicated lending. This marked a departure from the first quarter of 2009 in which Europe controlled the majority of the market at 36.7%. Japanese and Asian lending stood at 19.5% and 12.7% of total global proceeds, both near historic highs.

"If the levels of activity in the first quarter are any indication, we have reason to be more optimistic for the year ahead", said Neil Masterson, Global Managing Director of Investment Banking at Thomson Reuters. "The high-yield markets are seeing record global issuance, indicating investor confidence and bolstering Investment Banking fees. Bookrunning fees continue to outpace M&A advisory fees with DCM contributing 32% to the fee pool. M&A activity is slower than the previous quarter, but up from year ago levels in the US and Asia and for private-equity related M&A. The equity capital markets continue their recovery driven largely by emerging market IPOs and a robust global pipeline."

The full reviews are available at theThomson Reuters Deals Intelligence website.

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