Asian merger deals skyrocket

Asian merger deals skyrocket

BANGKOK (AP): Mergers and acquisitions skyrocketed last year
in the five countries struck hardest by the Asian economic crisis
- Indonesia, Thailand, Malaysia, South Korea and the Philippines.

The UN Conference on Trade and Development, which is holding
its 10th ministerial meeting of 188 member countries Feb. 12-20
in Bangkok, reported on Thursday that US$12 billion in mergers
and acquisitions were conducted last year, a huge increase over
the $1 billion annually before the crisis.

Cross-border mergers and acquisitions were the driving force
of foreign direct investment in the region, fueled by companies
looking to pick up bargains in the wreckage of the recession, the
organization said a statement.

Foreign direct investment last year in Asia, excluding Japan,
totaled $91 billion, a 1 percent increase over 1998.

Investment flows into Malaysia were steady and grew sharply
for South Korea. But investment into Indonesia, Thailand and the
Philippines all declined.