Deutsche Americas M&A head sees slow 2009

By Jui Chakravorty Das

NEW YORK (Reuters) - Mergers and acquisitions activity will remain subdued through this year and possibly into 2010, as most U.S. companies focus on their own balance sheets and try to pay down expiring debt amid tight credit conditions, a top investment banker at Deutsche Bank said.

Bruce Evans, who was appointed the head of the Americas for mergers and acquisitions at Deutsche Bank (DB.N) last month, said mergers are not the focus for most companies right now.

"Most companies today are focused on how to deal with the current crisis," he said in an interview with Reuters. "They are thinking about their capital structure and their competitive strategy."

Evans said that any activity will be driven by three major factors in the coming months: "Highly strategic mergers that de-risk the business or the balance sheets, opportunistic approaches by long-term suitors given reductions in target valuations, and forced or distressed sales."

But Evans also said that most U.S. companies do not fall into those categories.

Global deal volume fell 33 percent to $444 billion in the first quarter, according to data from Thomson Reuters. Deal volume in the United States fell 44 percent to $172.1 billion.

That volume was driven mainly by two big deals in the pharmaceutical sector: Pfizer Inc's $64.5 billion acquisition of Wyeth and Merck & Co's $46 billion acquisition of Schering-Plough, according to Thomson Reuters data.

"The key issues in transactions today center around capital structure and ability to finance," Evans said.