Corporate Finance - News in brief.

HLB Kidsons has found companies have an unrealistic opinion on the costs of floating on the Alternative Investment Market. According to a survey carried out by the firm, 73% of companies expected the level of professional fees for raising £2m to be in region of £100,000, when in fact the likely cost would be nearer £250,000. Kidsons said the lack of awareness raised concerns that few companies recognised the true costs of gaining admission to the market.

The full survey can be found at www.hlbkidsons.co.uk

KPMG Corporate Finance has revealed that the UK has seen a 71 per cent drop in merger and acquisition activity in the first half of this year. The firm has recorded £76bn worth of deals during the first two quarters of 2001. Globally, activity was down by 54 per cent. The firm said that the correction was in line with its findings that the UK market was returning to a more sustainable level.

Go to www.kpmg.co.uk for more information on the KPMG cross border M&A survey.