London • Solid Chinese economic growth figures combined with news that Rupert Murdoch's Twenty-First Century Fox made an offer to buy Time Warner to give markets a big lift Wednesday as traders mulled the possibility of further corporate activity.
Though Time Warner rejected the bid reported to be worth $80 billion from Twenty-First Century Fox and said it has no interest in further discussions with Rupert Murdoch's media entertainment giant, it hasn't stopped traders getting animated by the prospect of a potential tie-up or where the next big takeover news may emerge. Time Warner opened 15 percent higher.
For years, big mergers and acquisitions have been notable for their absence as companies stocked up on cash reserves to weather the global economic storms. Pursuing M&A was very much a secondary consideration for boards round the world. However, with the global economy improving and the impact of the global financial abating, M&A has ticked up this year. Bids help to elevate stock prices.