Mergers, but No Mania

Merger mania may be the only thing preventing a full-blown stock market correction these days.

The busiest merger Monday in the U.S. thus far in 2007, according to Thomson Financial, included Texas utility company TXU's(TXU Quote) agreeing to the largest leveraged buyout ever. TXU's $32 billion buyout by private equity firms Kohlberg Kravis Roberts, Texas Pacific Group and Goldman Sachs beats KKR's $25 billion buyout of RJR Nabisco in 1998. Including assumed debt, the TXU deal amounts to $45 billion.

But the $50 billion tally of announced deals couldn't sustain an early spark in the major stock indices. With oil over $60 per barrel, a spate of probably soft manufacturing reports out this week and traders expecting a setback after seven months of gains, the market slipped despite the acquisition frenzy. ...