At the top of the bull, investment bankers always get CEO's ears. I often wonder if they tap into the empire building ego of large company executives.
Mergers always are sold "on paper" as a simple to integrate combinations with large payoffs, but the ex-post reviews are much less favorable. In fact, it takes much longer time to integrate than the investment bankers sell and, often, the benefits are fleeting or negative.
Chevron (CVX) announced their acquisition of Anadarko today. I own CVX and am anticipating a tough two years or more ahead of it. These acquisitions provide opportunities, but not near term, over the long term. When the market finally uncovers the bullshit sales pitch for what it is, it will dump it and create a real value.
Acquisitions by big companies at a high prices and volume levels in conjunction with big IPO's are just another "canary in the coal mine" for market tops. High value IPO and acquisitions represent a big payday for fees by investment bankers. The getting is good so they are getting!
