In our view, the message that is emerging from buyers is that acquisition candidates are becoming too greedy. Prices are reaching unsustainable levels.

So if they want to raise the prices, it just means they're getting a little greedy.

If they want to raise the prices, it means that they are getting greedy.

Investors must be wondering whether the company will suffer from the winner's curse.

I feel the rally has stalled amid disappointment about progress in the war, but Bush is right, the allies will be victorious, and that will provide more fuel for the market to advance from a purely sentiment point of view rather than on fundamentals.

Using signaling theory, the conclusion has to be that managers of acquiring companies are using a higher proportion of cash relative to the last M&A cycle, as they believe that there is greater upside relative to downside risk in acquisitions.