M&A continued its resurgence on Monday as investors are still wondering if this dealmaking is a sign of a possible turnaround of the bipolar market and sluggish economy. The chatter of Express Scripts Inc. (NASDAQ:ESRX) acquiring a unit of WellPoint Inc. (NYSE:WLP), Pfizer Inc. (NYSE:PFE) possibly buying a larger stake in an Indian unit and
Anheuser-Busch InBev NV/SA reportedly interested in putting its Rolling Rock brand on the auction block didn't trigger a wave of buying.
The Nasdaq closed up 77 points, or .05%, to 1,653.51 while the Dow closed down 26.76 points, or 0.33%, to 8,056.62. But some feel the market is poised to make some ground this week as some banks expect to announce stronger-than-expected earnings in the coming days. Despite the relatively flat market, some deal stocks did make some big moves.
Drug benefits manager Express Scripts skyrocketed $7.64, or 15.54%, to $56.81 on news of its agreement to buy the health benefits unit of insurer WellPoint for $4.68 billion. The union would add 25 million members. The news also sent WellPoint shares up $3.24, or 8.03%, to $43.58. The deal is just one of a slew of mergers in the healthcare industry with the biggest being Pfizer acquiring Wyeth (NYSE:WYE) for about $64 billion in January.
Pfizer's purchase of Wyeth is already one of several pharmaceutical deals in 2009. In fact, the New York-based pharmaceutical giant also wants to buy a 33.77% stake in its Indian unit Pfizer Ltd. for about $136 million. Pfizer finished down 7 cents, or 0.52%, to $13.48.
AB InBev is looking to trim down with the possible sale of its Rolling Rock brand. The Wall Street Journal writes that New York private equity firm KPS Capital Partners LP's portfolio company North American Breweries Inc. may be a possible bidder. - Gerald Magpily
See CD: Pfizer tries acquiring 34% of Indian unit on the cheap
See Dealscape: Recession nearly over?
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