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Published May 19, 2008 at 12:16 PM
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The on-again, off-again Microsoft Corp. [MSFT] - Yahoo! Inc. [YHOO] is, well, on again. The two tech titans reportedly resumed their talks May 18, but the deal may only involve Microsoft acquiring a stake in Yahoo! as opposed to its former offer for the entire company. Dealmakers and investors are digesting the evolving talks as stocks of both tech titans have moderately moved. Overall, the possible hookup heated up the markets in Monday midday trading as the Dow rose 79.63, or 0.61%, to 13,066.43, while the Nasdaq jumped 16.62, or 0.66%, to 2,545.60. Here's a closer look of Deal Stocks in Monday midday trading:
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- Yahoo! increased 16 cents or 0.58%, to $27.83 on news of its possible hookup with Microsoft. The Redmond, Wash.-based software giant issued a statement May 18 that it has resumed talks with Yahoo! "Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!," Microsoft said. The Wall Street Journal reported May 18 that before ending talks, the software maker discussed buying only Yahoo!'s search business. The talks follow Carl Icahn move last week to start a proxy fight against Yahoo!, with the investor blasting Yahoo! leaders for acting "irrationally" in rejecting the $33 per share offer. Meanwhile, Microsoft declined 0.36, or 1.20%, to $29.63.
- Meanwhile, troubled Los Angeles-based real estate investment trsut Maguire Properties Inc. [MPG] fired its chief executive and president Robert Maguire III and replaced him with board member Nelson Rising. The change ultimately ends Maguire III 's bid for the company and puts REIT Brookfield Properties Corp.'s reported offer for the companies Los Angeles assets in limbo. Maguire III had offered a $21 per share offer for 75% of the company he founded. The deal also included the sale of Maguire's Los Angeles properties to Brookfield.
- Lastly, on the earnings front, Campbell Soup Co. [CPB] reported that its third-quarter profit jumped to $532 million, or $1.40 a share, from $217 million, or 55 cents, a year earlier due to the sale of its Godiva chocolate unit for $850 million in March. Excluding gains and charges, profit, however, dropped to 43 cents a share, trailing analysts' estimates by a penny. Investors, however, pushed Campbell's down $1.99, or 5.49%, to $33.98.
- Gerald Magpily
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