MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
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Friday, May 25, 2012
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6:01 PM Quest Software (QSFT -0.1%) shares dived in the final minutes of trading to $25.15 after Reuters reported Dell (DELL) is expected to reach a deal to buy the company, perhaps as soon as this weekend, but at a price of $23-$26/share. Before the story broke, Quest traded as high as $26.73 on a Bloomberg report that mentioned Dell's interest, but didn't name a price. Reuters adds Dell's post-earnings crash led a prior deal to fall apart. Comment!
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4:28 PM Shares of Amylin Pharmaceuticals (AMLN +8.4%) finished markedly higher on reports that the company, which is on the sales block, was already receiving bids from Sanofi (SAN) and Merck (MRK) in excess of $25 per share. 1 Comment
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3:25 PM Time Warner (TWX +0.3%) has popular sports website Bleacher Report on its radar, according to the WSJ. Discussions between reps from TWX and the VC-backed venture have been ongoing, although other bidders may also be in the picture. Comment!
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2:30 PM Facebook (FB) is reportedly interested in buying Opera Software, maker of the namesake browser. Opera's mobile base (NetMarketShare estimates it has a 12% share of mobile browsing, though that's down sharply Y/Y) could be of interest to Facebook, which is reportedly prepping a smartphone and continues to push its HTML5 mobile app platform, which allows apps to be accessed through a browser regardless of OS. Update: A source tells The Next Web Opera is talking to suitors, but doesn't know if Facebook is one of them. (earlier) 1 Comment
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1:47 PM BMC Software (BMC +2%) spikes a little after InformationWeek reports tech giants and P-E investors have expressed interest in buying part or all of the company. The tech companies aren't specifically named, but are said to be from a list that includes Dell, Cisco, Oracle, EMC, and IBM. Activist investor Elliott Associates is pushing for a sale, but BMC has thus far resisted its efforts. Rival Quest Software (QSFT +4%) is rallying on reports Dell is in talks to buy the company. Comment!
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12:33 PM Hudson City Bancorp (HCBK) could fetch a 31% premium to its current price in a sale to an acquirer "that could take substantial liability marks," reckons Stern Agee's Matt Kelley. Continued to be mentioned as a possible bidder is New York Community Bancorp (NYB). 1 Comment
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10:18 AM Satellite imagery firms DigitalGlobe (DGI +9.1%) and GeoEye (GEOY +6.5%) are spiking on rumors of a higher bid for DigitalGlobe. The company, which now trades at $17.12, turned down a $17/share offer from GeoEye earlier this month. Comment!
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10:10 AM Eastman Chemical (EMN +1.9%) wins approval from the EU to buy Solutia (SOA +0.5%) for $3.4B. EMN has said it expects the merger to be immediately accretive and the group would save ~$100M/year in costs by the end of next year. Comment!
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9:42 AM Quest Software (QSFT +4.3%) jumps to $26.26, 14% above IVP's $23/share buyout price, following a Bloomberg report that Dell (DELL) is interested in the systems management software vendor. Following Dell's recent crash, Quest's market cap is nearly equal to 10% of Dell's. A Dell buyout could lead to interest from another IT giant in Quest rival BMC Software (BMC +1.1%), which is under pressure to sell itself. Comment!
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9:33 AM Verizon Wireless' (VZ, VOD) spectrum purchases from cable providers will likely be approved in spite of intense scrutiny and criticism, analysts and industry insiders maintain. Verizon's offer to sell blocks of 700 MHz. spectrum are seen as an adequate compromise (though T-Mobile isn't interested). However, yesterday, Senator Herb Kohl wrote a letter expressing concerns about the purchases, and the accompanying reseller deals. The FCC's review of the deal is set to end on August 7. Comment!
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9:15 AM H-P's (HPQ) webOS team, its fate in limbo since the company ended hardware development for the platform, is being acquired by Google (GOOG), The Verge reports. Possible reasons for Google's interest: the ability to use elements of webOS' UI in Android; the commercialization of the Enyo app development platform; and the fact Android design chief Matias Duarte previously worked on webOS. Chances are Google paid a lot less than H-P's prior asking price of $1.2B. (HPQ layoffs) 2 Comments
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6:54 AM Lehman Brothers (LEHMQ.PK) confirms a report that it has agreed to buy the 26.5% stake it doesn't own in Archstone from Bank of America (BAC) and Barclays (BCS) for $1.58B. As expected, Sam Zell's Equity Residential (EQR), which was also battling for the apartment giant, will receive a $150M break-up fee from Lehman and the two banks. Comment!
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5:27 AM While some top execs take huge payments despite failing, Apple (AAPL) CEO Tim Cook is giving up $75M in dividend income by excluding himself from a program that enables staff to accumulate dividends on their restricted stock units that are still vesting. Cook has 1.125M such units that are due to vest over the next 10 years. (8-K) Comment!
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5:13 AM Citigroup (C) sells a 10.1% stake in Turkey's Akbank (AKBTY.PK) for $1.15B as part of the U.S. bank's program to sell assets in order to meet Tier 1 capital requirements. Citigroup will hold a remaining 9.9% stake for 3 years. The bank will take a post-tax $243M loss on the sale, having bought the 20% holding in 2007 for $3.1B. (PR) Comment!
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4:44 AM Dell (DELL) is in talks to buy Quest Software (QSFT), Bloomberg reports, as the PC maker continues its strategy of shifting its focus to higher-end business customers. In March, Quest agreed to sell itself to P-E firm Insight for $2B, or $23-a-share, although it then received other offers during a "go-shop" period. Comment!
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12:49 AM Yuanta Financial says it has pulled out of talks to buy Taiwanese Ta Chong Bank, dealing a blow to Carlyle's (CG) plans to exit the underperforming investment in a sale that could have been worth ~$1.25B. (previously) Comment!
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Thursday, May 24, 2012
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7:21 PM 3D Systems (DDD) acquires Bespoke Innovations, a startup based in San Francisco, California that develops proprietary, integrated scan, design and print technology designed to deliver custom fit prosthetics, orthotics and orthopedic devices, for an undisclosed sum. The company also reafirms its forecast, saying the acquisition will not be material to its revenue for the remainder of 2012. Shares -3% AH. Comment!
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6:16 PM Lehman Brothers (LEHMQ.PK) strikes a deal to buy the 26.5% stake it doesn't already own in apartment giant Archstone from BofA (BAC) and Barclays (BCS) for $1.58B, WSJ reports, ending the high-stakes chess game between Lehman and Sam Zell's Equity Residential (EQR). But Zell won't walk away empty handed, as his firm will get $150M in the deal. 8 Comments
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6:15 PM Facebook (FB) paid over $80M to buy social gifting app developer Karma, sources tell Bloomberg Businessweek. Karma, whose purchase was announced on IPO day, could help Facebook finally turn e-commerce into a meaningful revenue stream, courtesy of affiliate fees on recommended purchases. Given the challenges Facebook's ad business is dealing with, many are hoping e-commerce turns into major a growth opportunity. Comment!
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