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MERRILL LYNCH BUSINESS ADVISORY SERVICES SAYS NUMBER OF ACQUISITIONS ANNOUNCED IN SECOND QUARTER 1993 FLAT; VALUE ROSE

 SCHAUMBURG, Ill., July 15 /PRNewswire/ -- Merrill Lynch Business Advisory Services, a division of Merrill Lynch (NYSE: MER), reported a 40-percent increase in the total value of announced mergers and acquisitions in the second quarter of 1993. According to its research, the total value of proposed mergers and acquisitions disclosing a purchase price in the second quarter was $33.2 billion compared to $23.8 billion in the 1992 period.
 There were 681 transactions announced in the 1993 second quarter, a decrease of only 1 percent from 686 a year earlier.
 Total value of transactions disclosing a purchase price in the 1993 first half, ended June 30, was $50.9 billion, an increase of 9 percent from the 1992 six months. There were 1,228 transactions announced, down 3 percent from the year-earlier period.
 Transactions between U.S. and foreign companies accounted for 21 percent of total merger/acquisition announcements in the first six months of 1993, compared to 23 percent in the 1992 period. Only one of the largest deals involved a foreign company: British Telecommunications PLC's proposed acquisition of 15.1 percent of MCI Communications Corporation, valued at $3.4 billion.
 There were 84 foreign buyers in the 1993 first half, an increase of 5 percent from the first half of 1992. The total value bid by foreign buyers for deals where a purchase price was disclosed was $5.9 billion.
 In contrast, for the 1993 six-month period, the number of U.S. corporations announcing foreign acquisitions dropped 16 percent to 179, while the total value bid for those deals where a purchase price was disclosed increased 32 percent to $5.0 billion.
 Six of the largest transactions announced in the first half of 1993 were divestitures. The largest divestiture, also the largest deal involving a foreign company as previously mentioned, was British Telecommunications PLC's proposed acquisition of 15.1 percent of MCI Communications Corp., the second-largest transaction announced in the 1993 six months. Forty-five percent of announced transactions were divestitures, with 548 valued at $20.9 billion, vs. 502 valued at $20.5 billion in the 1992 six months.
 The average transaction price announced in the 1993 first half rose slightly to $109.5 million, a 4-percent increase from the similar 1992 period. The median price advanced 32 percent to $28.5 million from $21.6 million in the 1992 first half. Activity in the smaller, under $50 million segment was relatively flat at 300 transactions compared to 304 in the 1992 period.
 There were nine deals valued at $1 billion-plus in the 1993 six months, compared to eight a year earlier. Those valued at $100 million- plus rose to 100, a 14-percent increase from the first half of 1992.
 The most active entities continue to be domiciled in the United Kingdom with 26 buyers and 28 sellers, and Canada with 14 buyers and 21 sellers.
 Based on 379 transactions for which method of payment was available in the first half of 1993, all-stock deals were the most prevalent, representing 37 percent of total deals, while all-cash transactions accounted for 29 percent. A combination of cash, stock and/or debt represented 33 percent.
 According to available data, the average price-to-earnings ratio offered in the 1993 six months was 22.3x, compared with 22.1x reported in the 1992 period. The average premium over market price tendered in the first half of 1993 decreased slightly to 42.8 percent from 43.1 percent a year earlier.
 Banking and finance continued to be the most active industry in the 1993 first half with 128 deals valued at $8.0 billion. This compares to 129 transactions valued at $8.7 billion in the comparable 1992 period. Four of the 15 largest transactions announced were in the banking and finance industry, led by the proposed acquisition of MNC Financial Inc. by NationsBank Corp., valued at $1.4 billion.
 Two industries which revealed vigorous merger/acquisition activity in the 1993 six months were health services and wholesale & distribution, accounting for 93 deals each with values of $4.4 billion and $5.7 billion, respectively. The largest deal in the wholesale & distribution industry, also the largest deal overall in the first half of 1993, was the proposed merger of Price Company Incorporated into Costco Wholesale Corp., valued at $4.6 billion.
 Headquartered in Schaumburg, Merrill Lynch Business Advisory Services provides specialized financing, transaction and ESOP advisory, valuation consulting and business brokerage services to closely held companies. It also publishes Mergerstat Review, one of the oldest and most extensive data banks of its kind.
 -0- 7/15/93
 /CONTACT: Jody Beutler, research manager, Merrill Lynch Business Advisory Services, 708-981-9800/
 (MER)


CO: Merrill Lynch Business Advisory Services ST: Illinois IN: FIN SU: ECO TNM

SB-DJ -- DE021 -- 2026 07/15/93 13:30 EDT
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Date:Jul 15, 1993
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