These failures, and potential failures, of transactions will have drastic affects on the ETFs that have these relinquishing companies as major holdings, sending their prices down the drain. It’s important for investors to watch these deals and to be aware of which of these companies they might be holding.
It isn’t all gloom for for the M&A industry. When funding can be aquired and stability reaches the financial market, weaker firms will be more accepting of offers and some of these deals that have been called off may be rekindled.
iShares MSCI Australia Index Fund (EWA): is down 53.7% year-to-date; BHP is 13.3% and RTP is 3.1%
iShares MSCI Switzerland (EWL): is down 35.6%, Roche is 13.7%
PowerShares Dynamic Biotech & Genome (PBE): is down 29.4% year-to-date, DNA is 5.6%
