Mergers and Acquisitions May Top $3.5T in 2007

Mergers and acquisitions may set a worldwide record of more than $3.57 trillion before this year ends without a mega-deal from the kings of leveraged buyouts.

M&A bankers need to drum up only $486 billion in transactions during the next four months to boost fee revenue to more than $11 billion for the first time, data compiled by Bloomberg show. Only once in the past seven years, during the takeover drought of 2002, have they failed to crack the $500 billion mark from September through December.

As contagion from the subprime-mortgage crisis in America sidelines Kohlberg Kravis Roberts & Co. and Blackstone Group LP, overseas buyers are stepping in. Indian billionaire Ratan Tata and Dubai's Sultan Ahmed Bin Sulayem are just two of the investors seeking to benefit while competition is scarce and the dollar is cheap.