Verizon megadeal helps spur market stampede

The markets broke out of its three-day funk with the bulls charging forward on a megadeal from Verizon Wireless and restructuring from Continental Airlines Inc. Meanwhile, a better-than-expected jobless claims number gave some investors another reason to smile on Thursday. Overall, the Dow finished up 213.97, or 1.7%, to 12,604.75, and the Nasdaq closed up 46.80, or 1.87%, to 2,549.94. Here's a closer look at performance of stocks involved in deals that impacted Thursday's markets:

Continue reading below

• Verizon Communications Inc. [VZ] jumped $1.98, or 5.35%, to $38.96 as Verizon Wireless, a joint venture between Verizon and Britain's Vodaphone Group plc, reached an agreement to purchase cellular provider Alltel Corp. for $28.1 billion. The transaction makes Verizon Wireless the largest cell-phone carrier in the U.S. The deal calls for Verizon to pay $5.9 billion for Alltel's equity and assume $22.2 billion in debt. The aftermath of this deal may trigger more consolidation in the cellular sector.
• Meanwhile, shares of Continental Airlines Inc. [CAL] closed up 70 cents, or 4.8%, to $15.20 following an announcement that the airlines will layoff 3,000 workers and reduce its fleet size. Continental as well as its competitors are trying to find ways to strengthen their financials as deep increases in fuel prices and labor costs have clouded the financial future of their sector.
• Lastly, book seller Borders Group Inc. [BGP], which has been rumored to be talking with rival Barnes & Noble Inc. about a merger, announced it would sell 30 bookstores in Australia, New Zealand and Singapore to A&R Whitcoulls Group Holdings Pty. Ltd. in a deal valued up to $104 million. Proceeds are intended to shore up Borders' bottom line but possibly could be used by the seller to attract a strong bid from Barnes & Noble.

- Gerald Magpily

Post a comment

Name:

Email Address:

URL:

Remember personal info?

Comments: (you may use HTML tags for style)

Please only click "Post" once. It may take a few moments to process.

Deal Video

	Inside The Deal: Cisco Systems' Hooper talks about how transactions have transformed the company's business.
More video...

Elsewhere on The Deal.com

Dealwatch

• Confectioners: Cadbury, Hershey, more
• Airline consolidation, bankruptcy
• AIG Inc.
• AOL

The Deal Magazine

• The kids are all right
• The search for auspiciousness
• Be true to your school
• Waiting to exhale

Corporate Dealmaker

• Medtronic earnings reflect strategic maneuvering
• Deal Economy 2010: Morgan Stanley's Smith Barney integration
• JDA waits out storm for i2 buy
• Deal Economy 2010: Cisco's Hooper on M&A strategy

The Deal Video

• Deal Economy 2010: Weil's Miller on resolution authority
• Deal Economy 2010: Bove on bank failures, financial reform
• Deal Economy 2010: Weil's Miller on unwinding Lehman Bros.
• Deal Economy 2010: Centerview's Effron on large deals

Categories

• Bankruptcy
• Corporate restructuring
• Deal international
• Dealmakers
• Featured
• IPOs
• M&A
• Middle market
• Law & regulation
• Private capital
• Conferences
• Technology

Blog roll

• BloggingBuyouts
• BloggingStocks
• Dealbook
• DealBreaker
• Deal Journal
• FT Alphaville
• footnoted.org
• Going Private
• peHUB
• Reuters Dealzone
• SEC Investor
• Prince Of Wall Street
• Bankruptcy Bill
• Information Arbitrage

Archives

• November 2009
• October 2009
• September 2009
• August 2009
• July 2009
• June 2009
• May 2009
• April 2009
• March 2009
• February 2009
• January 2009
• December 2008
• November 2008
• October 2008
• September 2008
• August 2008
• July 2008
• June 2008
• May 2008
• April 2008
• March 2008
• February 2008
• January 2008
• December 2007
• November 2007
• October 2007
• September 2007
• August 2007
• July 2007
• June 2007
• May 2007
• April 2007
• March 2007
• February 2007
• January 2007
• December 2006
• November 2006
• October 2006
• September 2006
• August 2006
• July 2006
• June 2006
• May 2006
• April 2006
• March 2006
• February 2006
• January 2006
• December 2005