NEW YORK (DailyFinance) -- With interest rates so low and corporations sitting on $2 trillion in cash, a slew of mergers and takeovers across a number of industries appears likely in 2011. That should give investors plenty of opportunity to capitalize on large corporations' willingness to pay premium prices to acquire competitors or strategic partners. Private equity firms and hedge funds will also be very active acquirers.Most target companies' stock prices rise after a merger is announced, especially if a bidding war develops among several competing acquirers. So, investors who want to capitalize on M&A should begin developing a strategy now. But how? One way to take advantage of next year's M&A revival would be for investors to identify takeover targets themselves, but that's extremely difficult. More feasible would be to scout out mutual funds or exchange traded funds (ETFs) that aim to profit from the M&A boom.
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