Will the deals keep up?

摘要

How the government's change in tax policy coupled with the rise of troubled trusts will affect M&A activity for income funds Income fund M&A was a busy area in 2007. Although the market was not as frenzied as some commentators had predicted, about 25 income fund transactions with a total dollar value of approximately $23 billion were reported in the wake of the Canadian government's announcement, on October 31, 2006, to eliminate the tax-advantaged status of income funds. Many additional funds have commenced strategic review processes, with the expectation that many current income funds will go private, as market conditions — including the recent, highly publicized negative developments in the Canadian and US credit and currency markets — permit.