Monday was chock full of deal news that included flavor from a Mars Inc.-Wm. Wrigley Jr. Co. [WWY] hookup, a dash of Ford Motor Co. [F] minority stake sale and Maguire Properties Inc. [MPG] buyout proposal. Unfortunately, all the M&A activity didn't have an impact on the markets, but the companies involved in these deals showed some movement. The Dow inched up 3.42, or 0.07%, to 12,895.28, and the Nasdaq advanced $3.06, or 0.14%, to 2426.38.
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Wrigley shot up $14.27, or 22.83%, to $76.71 following news that Mars Inc. with financial support from Warren Buffett's Berkshire Hathaway Inc.
will buy the gum maker for $23 billion. Investors are so excited about the deal that Wrigley's is trading at 80 times its normal volume at 17.5 million. The all-cash deal amounts to $80 per share and would combine the world's biggest maker of chewing gum with the maker of M&M's and Snickers.
Meanwhile, Ford shot up 74 cents, or 10%, to $8.24 as Tracinda Corp. invested nearly $175 million, or a 1% stake, in the company. The investment is a vote of confidence from Kirk Kerkorian for Ford management, which helped lead the company to a surprising $100 million profit last week.
Lastly, investors are showing no love for Maguire Properties Inc. The company's chairman Robert Maguire plans to take 75% of the firm private for $952 million. Maguire is trading down 4.6% to $16.28. Maguire, a major landlord and developer in Southern California, has been negatively affected by the downturn in real estate and the slowdown in credit. - Gerald Magpily
