Deals
Corporate Bond Market's Merger Fever Leaves Some Buyers Cold
- Cheap debt draws companies to borrow to fund acquisitions
- Demand is showing signs of cooling as IBM gets weak order book
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U.S. blue-chip companies that have been waiting for the right time to tap the bond market to fund their acquisitions are starting to pull the trigger. Unfortunately for them, investors are showing some signs of getting warier.
International Business Machines Corp. and Bristol-Myers Squibb Co. both sold about $20 billion of bonds this week to fund acquisitions. Companies including 3M Co., Fidelity National Information Services Inc., T-Mobile USA Inc. and Anadarko Petroleum Corp.’s ultimate buyer are among the corporations expected to issue bonds to finance takeovers.