As the Dow Jones Industrial Average soared 189.20 points to close at 12,570.22 on Monday, both stocks
involved in pending deals as well as the broader market gained on news that Standard & Poor's had affirmed its AAA rating for troubled bond insurers Ambac Financial Group Inc. and MBIA Inc.
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The news comes as media reports surfaced that Ambac may secure $3 billion in capital to help maintain its invaluable AAA rating and potentially backstop losses associated with its structured finance business. The reports also detailed the company's plan to potentially split its business between the municipal bonds portfolio and the structured finance side. Ambac's stock skyrocketed 15.87% to $12.41 on the news, and MBIA shares jumped 19.70% to close at $12.41.
The biggest gainer among deal stocks was Take-Two Interactive Software Inc., which lept 54.90% to close up $9.52 per share at $26.88. Video game giant Electronic Arts Inc. announced Sunday a roughly $2 billion, or $26 per share, all-cash bid for Take-Two, maker of the "Grand Theft Auto" series. Redwood City, Calif., Take-Two's board turned down a $25 per share proposal earlier this month. - Michael Rudnick
