Buy The Bust-Ups

Both acquisitions and divestitures are booming. For investors, bigger is almost never better

Corporate takeovers get all the attention. How could they not? Billions of dollars and thousands of jobs are at stake. Then there's the rock-star status of dealmakers like GE's Jack Welch. But the ugly truth about mergers, running at a record clip again this year, is that a great many don't work out. It should be no surprise, then, that amid so much merger mayhem, company divestitures are running high as well.

That often gets overlooked, and it's a shame because investors can really make a killing in bust-ups. I'm not talking about AT&T;, by the way. That's a bust-up with...

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