The value of mergers and acquisitions involving European targets jumped 24% in the first quarter of this year compared with the same period last year, according to Dealogic, the investment banking research firm.

Preliminary data from Dealogic revealed that around $166bn (€156bn) of deals in the first quarter involved European targets, out of $300bn worth of deals worldwide. Globally the value of announced deals rose just 3% from the same period last year, and the number of deals dropped by 32% to 4,248. The improved deal flow will be encouraging for M&A advisers, many of whom have had their team size drastically reduced to compensate for the lull in activity over the past two years. Few bankers expect 2003 revenues to be significantly up on 2002.