"Mergers and acquisitions activity picked up modestly in the second half of

2009, but remained below the pace of earlier periods. Frustration with slow

growth will likely lead to corporations desiring to pursue M&A activity in an

attempt to bolster growth. Generally strong balance sheets, excess cash and

strong and growing free cash flow are all supportive of this view. This activity

will likely take a variety of forms and should occur across a wide spectrum

of industries and sectors."