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Published February 26, 2008 at 5:45 PM
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Stocks involved in pending deals continued to ride the Dow Jones Industrial Average's extended rally Tuesday. The Dow ended up 114.20 points at 12,684.92 on news that IBM Corp. approved a $15 billion stock buyback. The gain marks the second consecutive 100-plus point rise. Monday's rally was sparked by Standard & Poor's reaffirming its triple-A rating for bond insurers MBIA Inc. and Ambac Financial Group Inc.
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- The market rally looks to have lifted Clear Channel Communications Inc. amid a financing obstacle that has surfaced in its television business deal. Its shares gained 5.16% to close at $33.80. Wachovia Corp. on Feb. 22 filed suit to avoid financing Providence Equity Partners Inc.'s $1.1 billion purchase of Clear Channel's television assets.
- First Charter Corp. also logged gains in spite of a deal obstacle, ticking up 3.34% to close at $25.08. A shareholder of Fifth Third Bancorp has filed a lawsuit to stop the bank's roughly $1.1 billion acquisition of First Charter Corp. According to a Monday filing with the Securities and Exchange Commission, Fifth Third told First Charter that the shareholder, whose name was not disclosed, filed a derivative suit in the Court of Common Pleas for Hamilton County, Ohio, against Fifth Third, alleging "breach of fiduciary duty and waste of corporate assets."
- Networking equipment maker 3Com Corp. was also a benefactor of bullish behavior as its shares lifted 5.30% to $2.98 per share. After withdrawing their proposed $2.2 billion buyout from a national security review panel last week. Bain Capital LLC and 3Com said late last week that they were attempting to restructure their deal in hopes of attaining government approval.
- Michael Rudnick
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