An $11 billion takeover announcement this morning has helped propel the day to the largest Monday in nearly two months, even before the opening bell has rung. With it, comes the thought that a resonant Merger Monday may have finally emerged.Merger Monday is the nickname given to the first day of the week when companies typically announce merger and acquisition activity. The day can set the tone for Wall Street, but has taken a back seat to macroeconomic issues plaguing Europe and the Americas over the past few years.
Deal volume totaling $13.6, $14.4, and $13.5 billion were announced on the last three Monday’s in October.
Today, Gilead Sciences announced its purchase of Pharmmaset, Inc., a manufacturer of hepatitis medicines, in a bid to create the world’s first one-pill treatment for the disease, pushing the day’s volume to $18 billion.
Quarter-to-date, more than one third of the $264 billion in deal volume has been announced on a Monday, according to data compiled by Bloomberg. Take into account the Sunday announcement of Kinder Morgan’s $37 billion takeover of El Paso Corporation, which the Street digested on Monday, October 17, and that figure jumps to half of all deals.
For the investment banks offering advice, Morgan Stanley leads with 28% of market share, followed closely by Goldman Sachs and Barclays Capital. Morgan advised both El Paso and Pharmmaset in their buyouts.
Even with the recent pickup in activity, this November is lining up to be relatively tame compared to last year, when some $220 billion in deals were announced.