In 1998, four of the five largest corporate mergers have been proposed. But are they good for American consumers? After this background report, WGBH's Paul Solomon leads a discussion. Then continue the debate in an online forum.

PHIL PONCE: So far,1998 is shaping up as a record year for mergers and acquisitions. Since January, four of the five largest mergers in corporate history have been proposed. In the world of high finance, Citicorp teamed up with Travelers Group in an $83 billion deal. The goal: to offer consumers one-stop shopping for all their banking, investing, insurance and other financial needs.

NationsBank and Bank America announced plans for a $60 billion merger, creating what they hope will be the first truly coast-to-coast bank. In the auto industry, one of America's big three has gone global. Chrysler is being bought by German powerhouse Daimler-Benz in a deal with more than $40 billion, the largest takeover in automotive history. In communications, the so-called Baby Bells are growing in size but shrinking in number, most recently with the purchase of Ameritech by SBC in a $62 billion stock deal. For the businessmen involved, opportunity calls.

RICHARD NOTEBAERT, CEO Ameritech Corporation: When we looked at this together, there's a perfect fit.

JOHN REED, Citicorp: The business opportunities seem to be quite fantastic for our shareholders.

ROBERT EATON, Chairman, Chrysler: We are leading a new trend that we believe will change the future and the face of this industry.

PHIL PONCE: The recent merger activity continues a broad trend of the last several years--one that's hit industries as diverse as entertainment and media, health care and pharmaceuticals, defense, insurance and retail. In the last year alone, a record $1 trillion in mergers took place, all amid a strong economy and booming stock market. Today's merger boom is just the latest in American economic history. Industrial takeovers of the early 1900s gave birth to giant oil, steel, and auto companies. General Motors, for example, was created by the merger of more than a dozen car companies. Both the 1920's and 1960's saw bursts of merger activity and the creation of new conglomerates in a host of industries.

COMMERCIAL SPOKESMAN: The crowning jewel in R. J. Reynolds Tobacco Company's bid to be the lowest cost producer of the highest quality cigarettes in America.

PHIL PONCE: More recently, in the 1980's, hostile takeovers and leveraged buyouts like the one that produced RJR Nabisco fueled another merger frenzy. But mergers within just the last three years have outstripped the entire decade of the 1980's. And business watchers in many industries predict more are on the way.