European M&A activities still look unpromising in economic climate

The trend for merger arbitrage managers to migrate towards the distressed securities sector has continued in the early part of 2003 as the prospects for European merger artitrage (M&A) activity remain bleak.

The M&A universe relies upon conducive prevailing economic winds for it to prosper, whereas the distressed sector tends towards better returns when the economic cycle is coming out of recession.

The assumption at the end of last year was that global markets would be heading out of the bear ph