If press reports out of the UK and in Hong Kong are anything to go by, a takeover of Merrill Lynch MER by HSBC 5 looks a done deal. Akin to a pair of lovers that have undergone a long and steady courtship, the respective families are now only waiting for the wedding date to be set.
In this light, the recent decision by HSBC to ask shareholders to approve a 43% increase in its authorized share capital to $7.5 billion and give Directors the power to issue up to 1.9 billion new shares, equal to approximately 20% of its issued share capital, was viewed in most quarters as an engagement to become engaged....
