Deals spark exciting start to February
Whilst little birdies might be squawking about Twitter (NYSE:TWTR), amid rumours that an angel investor and private equity may be making moves, there were also other more tangible transactions driving stock market activity on Monday.
Med-tech group Stryker (NYSE:SYK) is buying a disposal products maker Sage Products for US$2.7mln from Madison Dearborn Partners.
Power producer Dominion (NYSE:D) is acquiring natural gas firm Questar (NYSE:STR) in a US$4.4bn deal.
Avalanche Biotechnologies (NASDAQ:AAVL) is to merge with a French gene therapy peer in a paper deal notionally worth about US$100mln.
And Monday’s hot small cap stock is Adaptive Media (OTCMKT:ADTM) which shot up 300% to almost 60 cents but is still way off a reported US$1.50 per shares takeover value that’s potentially on the table.
Heat cools on Chipolte as CDC gives all clear on E.coli
The spicy restaurant operator was another ‘hot’ stock on Monday, following the all clear from America’s health and safety watchdog.
Chipolte shares are down some 40% since October due to two outbreaks of E.coli affected around 50 people across 14 states, but, today the price stiffened to US$470, up 4%, after the US Centers for Disease Control and Prevention confirmed the outbreaks were over.
The potentially life threatening bacteria was not identified in tests on multiple food items, the CDC said.
Panthers will win the Super Bowl, says EA sports
Cam Newton’s Carolina Panthers will beat Peyton Manning’s Denver Broncos in next Sunday’s Super Bowl by a score of 24 - 20, so says Electronic Arts (NASDAQ:EA).
The video game studio behind the Madden NFL franchise today unveiled its pre-game prediction, which is generated via a simulation of the Super Bowl matchup in the game.
EA’s promotional look through the Madden crystal ball has correctly predicted nine of the last twelve Super Bowls, it says.
According to EA, Carolina will take a 10 point lead in the first quarter, and will lead with a 17 point deficit by the time Coldplay intersperses the world’s most lucrative advertising slots during the halftime show. And by the end of the game the lead will prove too great, despite a two-touchdown comeback from the Broncos.
Market Movers
Here are the news driven risers and fallers shortly after the opening bell.
Risers
Questar Corporation (NYSE:STR), up 21% at US$24.70. Energy group Dominion is to acquire the natural gas firm US$4.4bn (US$25 per share) in a deal.
Twitter (NYSE:TWTR), up 7.5% at US$18.06. The social media group, which has fallen about 70% since October and has had a revolving door on the boardroom, rallied amid reports that private equity investors were considering “some sort of deal”.
Adaptive Medias (OTCMKTS:ADTM), up 385% at 70 cents. The over-the-counter quoted group revealed it is considering a bumper US$35mln, US$1.50 per share, takeover approach.
Fallers
Avalanche Biotechnologies (NASDAQ:AAVL), down 12% at US$5.21. The gene therapy group has agreed a share based acquisition of French peer Annapurna, which based on Friday’s close, would be worth US$105mln.
Nokia Corporation ADR (NYSE:NOK), down 11% at US$6.36. Investors are disappointed with the terms the Finnish cell phone maker has agreed in a legal settlement with South Korean tech giant Samsung.
TearLab Corp (NASDAQ:TEAR), down 13.4% at US$1.14. The medical technology group released news of a new equity funding, estimated at US$15mln (plus a possible US$2.25mln overflow) which will support commercialisation and R&D efforts.