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Published February 13, 2008 at 6:00 PM
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The majority of deal stocks tracked by The Deal followed broader market gains Wednesday. The Dow Jones Industrial Average moved sharply, rising 178.83 points to 12,552.24 after the U.S. Department of Commerce reported an unexpected 0.3% rise in January retail sales.
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- One retailer that reaped the benefits of the positive sector news was the otherwise struggling Restoration Hardware Inc., which has a buyout agreement with private equity firm Catterton Partners for $4.50 per share. The home furnishings retailer's shares gained 2.88% to close at $4.29 per share.
- 3Com was a top gainer among deal stocks, rising 9.71% to close at $4.18 per share. Bain Capital LLC, which intends to buy the company for $2.2 billion, late Tuesday offered concessions to address U.S. government concerns about its China-based partner on the deal, Huawei Technologies Co. Ltd., which has connections to the Chinese government.
- Cumulus Media Partners was one of the few losers Wednesday, sinking 8.11% to close at $5.78 per share. Cumulus' performance has been very sensitive to the progress or lack thereof of the $23 billion Bain and Thomas H. Lee Partners LP buyout of Clear Channel Communications Inc., as the Federal Communications Commission's rules surrounding the deal require that the buyers' holdings in Cumulus be "nonattributable. The private equity firms are awaiting Department of Justice approval on the deal, which was expected to come as soon as Wednesday.
- Michael Rudnick
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