Dealmakers, who have enjoyed an unprecedented deal boom over the past three years, are facing an uncertain future as the funding for deals dries up following the credit crunch that hit markets.

Thomson Financial figures show that by the end of July, European M&A had reached $1.2bn (£604m), more than the whole of 2006, but with the US sub-prime crisis hitting global equity markets, corporate financiers have become very edgy.

'The irrational behaviour in the credit markets is being driven by uncertainty,' Tom Cooper, head of European M &A at UBS, told the FT. 'The underlying causes are not very clear and it is impossible to assess the full consequences at this stage.'

Further reading:

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