Wall Street's rising tide Wednesday looks to have lifted some major boats in the deal universe. As the Dow Jones Industrial Average reversed an earlier session loss of over 300 points to skyrocket 298.98 points for the day, a handful of stocks currently making the deal headlines also celebrated gains.
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Sirius Satellite Radio Inc.'s stock skyrocketed 8.30% to close at $2.87 per share on speculation that the Justice Department and the Federal Communications Commission could have a decision tonight on XM Satellite Radio Inc.'s $13 billion acquisition of its only competitor, according to media reports. XM looks to have benefited as well from the rumors, as its shares climbed 5.81% to close at $11.20.
Sirius and XM weren't the only media companies flying higher. Clear Channel Communications Inc.'s shares inched upward a modest 0.22% to close at $32.21. This came in the wake of a Jan. 22 drop of just over 4% as soft industry results and broader market losses set off Wall Street fears about the likelihood of its pending $26 billion buyout deal to Thomas H. Lee Partners and Bain Capital LLC, according to media reports.
Other buyout targets also rose in afternoon trading. Alliance Data Systems, which is the target of a $6.4 billion buyout by Blackstone Group LP, soared 8.16% on the day to close at $65.21 per share. MidWest Air Group Inc., which also is amidst a buyout, took flight Wednesday, recording a 2.54% stock increase to close at $14.94 per share. The company has a $450 million deal in place to be acquired by a consortium including TPG and Northwest Airlines.
Sierra Health Services Inc. and UnitedHealth Group Inc., which are currently involved in an antitrust review on a $2.4 billion merger, went different ways on the ticker with Sierra climbing 0.96% to close at $42.95 per share and UnitedHealth falling 1.70% to settle at $50.35 per share.
Another health related company, Ventana Medical Systems Inc., which this week accepted a $3.4 billion takeover offer from Swiss pharmaceuticals rival Roche Holding AG, slipped 0.08% on the day to close at $88.97 per share. - Michael Rudnick
