Mergers and Acquisitions Not IPOs Will Be the 2008 Mining Sector Trend
Source: Mineweb.com (2/12/08)
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.