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MERRILL LYNCH BUSINESS BROKERAGE AND VALUATION SAYS VALUE OF MERGERS AND ACQUISITIONS ANNOUNCED IN 1993 1ST QUARTER DOWN 22 PERCENT

 SCHAUMBURG, Ill., April 26 /PRNewswire/ -- Merrill Lynch Business Brokerage and Valuation, a division of Merrill Lynch, reported a 22-percent decrease in the total value of mergers and acquisitions announced in the first quarter of 1993. According to their research, the total value of proposed mergers and acquisitions disclosing a purchase price in the first quarter was $18.1 billion, compared with $23.1 billion in the 1992 period. The average price was down 10 percent.
 There were 569 transactions announced in the 1993 first quarter, down only 2 percent from 581 a year earlier.
 Deals between U.S. and foreign companies fell to 18 percent of total merger/acquisition announcements in the first quarter of 1993, compared to 24 percent in the 1992 period. Only two of the largest deals involved foreign companies, the largest being Anheuser-Busch Companies' proposed acquisition of 18 percent of Grupo Modelo S.A. de C.V. of Mexico, valued at $477 million.
 The number of foreign buyers continued to fall in the first quarter of 1993 to 30, down 39 percent from the 1992 period. The total value bid by foreign buyers for deals where a purchase price was disclosed dropped 87 percent to $790 million. The largest deal in 1992 involved a foreign buyer and was announced in the first quarter.
 The number of U.S. corporations announcing foreign acquisitions was down 22 percent to 73, while the total value bid for those deals where a purchase price was disclosed fell 15 percent to $1.6 billion. In 1992, the number of U.S. corporations announcing foreign acquisitions set a record.
 Even though the most active foreign participants continued to be domiciled in the United Kingdom and Canada, transactions in those two countries dropped almost 50 percent in the 1993 first quarter from the year-ago period. Jody Beutler, research manager of Merrill Lynch Business Brokerage and Valuation, said it appears economic conditions worldwide continue to have a negative impact on deals between U.S. and foreign corporations.
 Reversing an earlier trend, deals valued at $50 million and under were down 14 percent to 126.
 There were three $1 billion+ and 43 $100 million+ deals announced in the 1993 first quarter, the same numbers as in the 1992 first quarter.
 Nine of the largest transactions announced in the first quarter of 1993 were divestitures, the largest being the proposed divestiture of American Express Co.'s Shearson Lehman Bros. brokerage unit to Primerica Corp. valued at $1 billion. Forty-five percent of the announced transactions were divestitures, with 256 valued at $9.1 billion, vs. 226 valued at $12.9 billion a year earlier.
 The largest transaction announced in the 1993 first quarter was the proposed acquisition of LDDS Communications by Metromedia Co.-Resurgens Communications Corp. valued at $2.2 billion. Three of the 15 largest deals announced in the first quarter were in the communications industry.
 Banking and finance was again the most active industry with 57 transactions valued at $4.2 billion vs. 51 deals valued at $4.6 billion a year earlier. Five of the 15 largest transactions announced in the 1993 first quarter were in the banking and finance industry, led by the proposed purchase of MNC Financial Inc. by NationsBank Corp. valued at $1.4 billion.
 Based on 162 transactions for which method of payment was available in the first quarter of 1993, all cash deals accounted for 34 percent, a 62-percent increase over the 1992 first quarter. All-stock transactions, which had previously been the preferred method of payment, fell to 39 percent of total deals, while a combination of cash, stock, and/or debt was at 27 percent.
 According to available data, the average price-to-earnings ratio offered in the 1993 first quarter was 24x, up from 20.7x a year ago. The average premium over market price offered was 34 percent, down from 43 percent a year earlier.
 Headquartered in Schaumburg, Merrill Lynch Business Brokerage and Valuation 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- 4/26/93
 /CONTACT: Jody Beutler, research manager, Merrill Lynch Business Brokerage and Valuation, 708-981-9800/


CO: Merrill Lynch Business Brokerage and Valuation ST: Illinois IN: FIN SU: ECO

DH-ML -- DE015 -- 0710 04/26/93 12:46 EDT
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Date:Apr 26, 1993
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