The Deal
Sunday, November 22, 
11:56 am

Stocks slip, but could have been worse

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Grizzly_Bear_Alaska.jpgDeal stocks were mixed Tuesday, and the broader Dow Jones Industrial Average inched downward 16.04 points to close at 12,532.60. A 16-point decline is moderate to say the least considering the news of a 10.7% U.S. housing prices decline in January, representing the biggest drop in a decade, and a consumer confidence decline for March that was the largest in five years. Maybe the Street has become numb to continued dire housing and consumer data, maybe investors perceived the home price skid as a bottom, maybe no news of bank bailouts is good news ... but, it is only Tuesday.

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Also on Dealscape

  • Thornburg Mortgage Inc. skyrocketed in the face of the bleak housing stats, climbing 36.35% to $1.73 per share. The cash-starved home lender, which is trying to raise $1 billion in convertible debt securities as it stares down possible bankruptcy, Tuesday in a regulatory filing announced a change to its bylaws that enables investors to buy up to $300 million in stock. Previously, individual investors in the company have been restricted to 10% voting rights if they held over one-tenth of its stock. The bylaw revision now allows larger holders full voting rights. 
  • On the other end of the spectrum was Clear Channel Communications Inc., which sunk 5.49% to close at $32.56 per share. The expected March 19 closing of a $25 billion buyout offer of Clear Channel by Bain Capital LLC and Thomas H. Lee Partners LP was delayed last week as Clear Channel announced an extension of the tender offer for its existing debt from March 20 to March 24.
- Michael Rudnick




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