First-Quarter M&A: Bigger

The first quarter of 2006 will be remembered as a huge one for mergers and acquisitions.

With AT&T's(T Quote) acquisition of BellSouth(BLS Quote) pacing the trend, total merger volume in the U.S. was $331 billion from January through March, according to Thomson Financial, up over 19% from the first quarter last year.

But behind the headlines, a subtler trend has emerged. The total number of deals this quarter fell from both the previous and year-ago periods. With rising interest rates, higher stock prices and an economic expansion in its third year, companies may start being more cautious about their acquisitions. ...