Cash Is Still King, But Stock Only Deals Are Increasing

While cash still remains the currency of choice in M&A transactions so far in 2010, accounting for 58% of global volume, it seems that the volume of share only deals is gaining ground in 2010, with 26%. In contrast, share only deals accounted for just 13% of global M&A volume. In such volatile markets, the attraction of stock only deals is mutual for both bidder and target: both parties involved wish to minimise the risk of being short-changed at their end. As John Studzinski , of private equity (PE) giant Blackstone Group , puts it: 'It's an insurance policy.'

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