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Asset Management

European companies defy activists by holding on to their cash

Activist investors have been pushing companies over high cash levels

European companies would rather hang on to their cash despite the low interest-rate environment, as they delay making investments amid growing uncertainty over the economic outlook.

Companies across Europe, the Middle East and Africa held almost €1.1tn in cash at the end of 2018, a 15% rise from the €941bn they had on their balance sheets a year earlier, according to a report by Moody’s Investors Service.

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