Mergers and Acquisitions Not IPOs Will Be the 2008 Mining Sector Trend

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Globetrotter Kevin Tomlinson believes the narrower pipeline now available for raising capital, largely due to bankers, investors and stockbrokers being spooked by the huge fall-out with America's sub prime housing crisis, will help turn off the tap for project financing in the near future.

Globetrotter Kevin Tomlinson believes the narrower pipeline now available for raising capital, largely due to bankers, investors and stockbrokers being spooked by the huge fall-out with America's sub prime housing crisis, will help turn off the tap for project financing in the near future.

Tomlinson, Managing Director-Investment Banking for Thomas Weisel Partners, told Mineweb he believes his prime activity this year, unless there is a marked change in a nervous marketplace, will be in the mergers and acquisitions business.

There have been a colossal number of new IPO's in the Western World and this trend is going into stall mode, and so will the ability to raise capital without seriously eroding a company's issued capital, in other words capital raisings at low share price levels.

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