NEW YORK "Remorse and disgrace" rather than "hubris" is what is driving the investment management M&A business, Donald Putnam, managing director of
Divestiture rather than acquisition is likely to continue as the prime driver for M&As, few as they are, Putnam told executives gathered for
Firms that made big purchases are now grappling with their holdings and are going to go through "massive restructurings" to find ways to "manage these businesses more strategically," Putnam said.
The investment bankers outlook for the economy wasnt any better. Putnam predicts zero to minus 5% market returns for 2003 and continued problems into 2004, when he predicts "corporate P&L balance sheets might be repaired, but consumer balance sheets will degrade," resulting in "another year of poor P/Es" and single-digit returns.