More acquisitions predicted
Murillo Campello, Lewis H. Durland Professor of Management and professor of finance at Johnson, was interviewed in CNN Money (Feb. 12) about the trend of large companies holding on to large amounts of cash. Campello noted that companies began by keeping large amounts of cash in hand as a hedge against another market implosion but currently lack a sound strategic reason for continuing to hoard cash. Campello predicted more acquisitions as a result of the glut of cash held by companies such as Apple, Microsoft, Google, Cisco, and Oracle. Currently, however, Campello suggested that these cash-rich companies are unsure of how to spend their money.