There are lots of mid-cap, second-tier companies that are selling at big disparities to the leaders.

But the second-tier companies - including some using better-known brand names like Polaroid and Westinghouse - have a long way to go.

Commoditization can only take place, after all, in a world in which second-tier companies can compete in terms of quality and efficiency with top-of-the-line companies.

In 1987, the bulk of these consolidations came from "second-tier" companies that were seeking mergers in order to take on the industry leader.

But most of the second-tier companies continued to suffer losses.

Her loyal commitment to what at the time was an enterprising but second-tier company may have prevented her from achieving wider success earlier in her career.

He said he still thought that leading global companies warranted a premium, rather than a slight discount, to second-tier companies.

"We're seeing a lot of the smaller regional banks and second-tier companies," Mr. Michaels said.

"The downside is that we bought a solid, second-tier company, but I think that with our support they can improve their ranking."

Merger speculation immediately focused on other firms, including top investment banks and second-tier companies, and more names were on the list than off it.