2010 'Decent, Not a Great Year' for M&As: Kindler
“Just because you can get the money, doesn’t mean you should do the deals,” Robert Kindler, the vice chairman of investment banking for Morgan Stanley told CNBC Thursday.
Currently, investors seem to have turned their focus back to doing deals to get growth, something Kindler thinks is a "risk" because "people will forget that it's all about intrinsic value."
As opposed to last year, Kindler said, "when all corporations were focused on fixing their balance sheets, raising equity."
According to Kindler, companies that did that in a smart way were really rewarded, for example: Alcoa and US Steel raised capital, fixed their balance sheets and their stock has done very well.
"That's kind of behind us now," Kindler said. "This year we will see larger merger-of-equals with the focus on synergies."
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