European stock markets are sizzling with deal talk, as private-equity firms and corporate buyers woo some of the region’s largest and best-known names, from United Kingdom pharmacy company Alliance Boots to Dutch bank ABN Amro Holding, the Wall Street Journal reports.
Although few of the courtships have yet advanced to marriage, investors continue to scoop up stock in anticipation of rejections and raised offers as the talks play out, pushing prices higher.
Those unsolicited approaches are also lifting share prices of companies not linked to any deal, as any approach prompts bankers and analysts to recalculate the value of all companies in the sector.
Even a denial, or the termination of talks, isn’t enough to undo the gains. Some investors think one surprise overture will be a harbinger of others.