Public companies worth over €16 billion (Lm6.9 billion) were taken off European stock markets last year, a record. This was more than the amount raised by companies joining the market, although stock markets fared better this year than in 2002 and 2001.

It reverses a three-year trend, suggesting that shareholders have growing doubts about the efficiency of public ownership for many companies.

There were 96 take-private deals last year, compared to 73 in 2002 (worth Lm3.6 billion) and 83 deals worth just under Lm6.5 billion in 1999, according to data from Dalogic, a research company.

Marcus Agius, chairman of Lazard, was quoted in the Financial Times last week as affirming that 2003 was an unusual year: "The private equity players were cashed up and the equity prices were lower. Money was as cheap as it has been in a generation and the trade buyers were not active."

Investment bankers were quoted as attributing the rise to unusual market conditions of low equity valuations, coupled with low interest rates, which made public-to-private acquisitions affordable.