Deal developments heat up as markets cool

With executive changes at banks and restructuring news from other industries as a backdrop, the markets saw a deep chill on Monday as investors sold off holdings in midday trading. Dealmaking, which usually is strong on Monday morning, was only brisk and not enough to spur any upsurge in the markets as the Dow fell 151.11, or 1.20%, to 12,488.10 while the Nasdaq declined 32.24, or 1.28%, to 2,490.92. Let's take a closer look at the performance of Deal Stocks in Monday midday trading:

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• Wachovia Corp. [WB] dropped 78 cents, or 3.28%, to $23.02 as the struggling bank fired its CEO Ken Thompson, who had been blamed for the bank's woes because of its $24 billion purchase of Golden West Financial Corp. in 2006. The acquisition along with the bank's heavy investment in subprime investments have contributed to the bank's sluggish stock performance and anemic bottom line. Meanwhile, Washington Mutual Inc. [WM] said Kerry Killenger will step down as chairman and remain CEO. The embattled executive has seen his company 's share dip as the mortgage industry nearly crashed, precipitating a slowdown in the real estate market.
• In other financial news, MetLife Inc. [MET] announced it would sell its 52% stake in Reinsurance Group of America Inc. [RGA]. The deal would be completed through a tax-free splitoff to MetLife shareholders. RGA's stock will be recapitalized into two classes of common stock -- Class A, with the right to elect up to 20% of RGA's directors, and Class B, with the right to elect at least 80% of RGA's directors.
• Communications equipment maker Harris Corp. dropped $10.31, or 15.67%, to $55.46 as it said it would remain independent, deflating rumors that defense suitors including General Dynamics Corp. and Northrop Grumman Corp. were considering offers for the company. 

- Gerald Magpily

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