Investors were particularly bullish on
Indevus Pharmaceuticals Inc.'s product pipeline, as its stock soared
73.55% to close at $5.38 per share on news that Endo Pharmaceuticals
Holdings Inc. plans to buy Indevus for as much as $637 million in cash,
which would include $370 million, or $4.50 per share plus another $267
million based on performance of two Indevus products in development.
Not
all Deal Stocks were as bullish as Indevus, but others saw more modest
gains. American International Group Inc.'s stock climbed 4.82% to close
at $1.74 following reports that the ailing insurer has hired Moelis
& Co. to find a buyer for its International Lease Finance Corp.
unit, which is said to potentially fetch $8 billion to $10 billion. Not
much considering the $150 billion government loan hanging over AIG's
head, but it's a start.
Dow Chemical Co. climbed 6.64% to close at
$16.05 per share after the company threatened legal action and other
measures against Kuwait's Petrochemical Industries Co. to ensure it
does not suffer from the collapse of their $17.4 billion joint venture.
Petrochemical Industries notified Dow last week that it would cancel
their K-Dow venture just days before it was set to launch. The Kuwaiti
company's move jeopardized Dow's plan to buy rival Rohm and Haas Co.
for $15.4 billion. Rohm and Haas shareholders did not seem too
optimistic about Dow's fight to keep the JV alive, as Rohm and Haas
shares slipped 3.57% to close at $61.54 Tuesday.
Hollywood's
Lionsgate Entertainment Corp. has swooped in and snatched TV Guide
Network from Macrovision Solutions Corp., sending the tech company's
shares up 2.16% to close at $13.73. The deal values the cable TV
channel at $255 million.
Overall, the Dow Jones Industrial Average ticked up 62.21 points Tuesday to close at 9.015.10. - Michael Rudnick
Bullish is not a
word spoken much these days and rarely spoken amid the dwindling Deal Stock universe, however buying was rampant Tuesday among a handful of
what's left of Deal Stocks. 
