Dealmaking fuels Monday market surge

The week started strong with deals in the drug industry, financial sector and some movement in the Microsoft Corp.-Yahoo! Inc. proposed transaction. Markets responded positively to the deal activity, increasing 84.75, or 0.67%, to 12,693.60 in Monday midday trading, and the Nasdaq inched up 13.66, or 0.58%, to 2384.64. Here's a closer look at the performance of stocks involved in deals:

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• Shares of Swiss drug giant Novartis SA [NVS] dipped on its purchase of Alcon Inc. [ACL], the eye-care business of Nestle SA. The deal calls for Novartis to buy 25% of an Alcon stake for $11 billion and the right to acquire 52% of the rest of the company for $28 billion by July 2011.
• Meanwhile, shares of LifeCell Corp. [LIFC] shot up 16% on Kinectic Concepts Inc.'s [KCI] $1.7 billion cash offer for the maker of tissue repair products for reconstructive, urogynecologic and orthopedic surgeries. The San Antonio-based acquirer, which concentrates its business in advanced wound care and therapeutic support systems, aims to bolster its presence in operating rooms and acute-care environments with the deal.
• Mortgage lender Washtington Mutual Inc. [WM] jumped nearly 25% as it reportedly may get a a $5 billion shot in the arm from a group led by private equity firm TPG.
• Lastly, Microsoft Corp. [MSFT] is threatening Yahoo! Inc. [YHOO] that it will pursue a hostile takeover if they don't agree to a deal within the next three weeks, the Deal's senior writer Donna Block reports.

- Gerald Magpily

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