Dish Network is bidding $37-billion for Sprint NextelBrendan McDermid/Reuters
All speculation that the mega takeover would make another mark on the U.S. financial system is now confirmed.
Eight mega deals worth more than $10-billion (U.S.) have been announced since January, amounting to $174-billion, according to Thomson Reuters, almost double the total value of the four deals worth $92-billion announced in the same period last year.
Speculation of such a comeback started to swirl following the private buyout offer for Dell Inc. and Warren Buffett's privatization of H.J. Heinz Co., and turned into a reality following a string of telecom takeover bids. The latest: Dish Network's $37-billion bid for Sprint Nextel, bringing the total amount of M&A announced in the telecom sector to $85-billion this year.
The last time telecom was this hot was 2006, when AT&T acquired Bellsouth for $89-billion, including debt.
All the U.S. activity stands in stark contrast to Europe's subdued deal flow. Last Thursday CVC Capital announced that it would buy back a German metering company it originally sold in 2007.
The deal was worth only €3.1-billion ($4-billion), including debt, yet was Germany's largest buyout since the worst of the financial crisis in 2008.
Tim Kiladze