STOCKS NEWS EUROPE-Credit Suisse tips M&A plays for 2014

Merger and acquisition activity could prove a top theme for equities this year, says Credit Suisse (NYSE: CS - news) , with insurance, healthcare, technology and chemicals among the sectors that could see deals.

"With many companies having bought their own shares in 2013, 2014 may be more about buying someone else's," analysts at Credit Suisse say in a note, forecasting that the pick up in M&A could be stronger than many expect.

"We believe that corporates are biased towards investments that have a quicker payback - and this favours M&A rather than organic growth, which typically has a longer payback time."

In the IT software and services sector, they "see scope for all of the companies with net cash positions to pursue modest M&A opportunities".

Among chemicals, they highlight Arkema (Paris: FR0010313833 - news) and Croda as potential targets, while in paper and packaging, Mondi (LSE: MNDI.L - news) is seen as a possible buyer of others.

Telecoms are another sector to watch, according to the bank, which says:"An AT&T (NYSE: T - news) bid for Vodafone would likely trigger a major re-rating of the whole sector and open the door for more cross-border M&A deals."

Reuters messaging rm://antonina.vorobyova.thomsonreuters.com@reuters.net