Chris Stala, Director of KPMG Corporate Finance's Energy and Natural Resources Team quoted in SNLi.com

January 26, 2007

In the January 26, 2007 edition of  SNLi.com, KPMG Corporate Finance had an opportunity to contribute to Jennifer Zajac's article, M&A: Fear and loathing in M&A land.  Zajac reflected on the factors preventing a flurry of M&A deals expected to occur in 2006 due to the repeal of the Public Utility Holding Company Act and wanted commentary as to what the outlook is for M&A activity in this sector for 2007.

Chris Stala pointed out that CapEx is one major issue expected to bring parties to the merger negotiating table in 2007. Stala was quoted, "in certain instances, corporate mergers may alleviate the financial strain to fund CapEx either through operating efficiencies, merger synergies or financial capacity to raise new funds."  Stala further adds..."for some firms, equity and debt issuance will satisfy their need for capital but not all firms are well positioned to access the capital markets. Such companies will need to source capital through asset rationalization or merger opportunities; the alternative is to forestall investment programs or overload debt on the balance sheet, neither of which is an acceptable long term solution."

About KPMG Corporate Finance LLC

KPMG Corporate Finance LLC is a leading financial adviser serving domestic and international clients. KPMG Corporate Finance offers a full suite of investment banking and advisory services and the experience and depth of knowledge in global M&A and project finance to advise clients on mergers and acquisitions, sales and divestitures, buy-outs, financings, restructurings, fairness opinions, infrastructure project finance and other advisory initiatives. Operating in 51 countries, KPMG's Corporate Finance practice comprises more than 1,800 professionals who are able to meet the needs of KPMG's firms’ clients across the globe. In 2006, KPMG's Corporate Finance practice was ranked the number one financial adviser for completing the highest number of transactions globally (434 deals totaling US$48.9 billion), according to Thomson Financial’s global M&A league tables, and was named global financial adviser of the year by Infrastructure Journal.