Merger Monday was back this week as a slew of big deals offered a glimmer of hope that the M&A market has made a comeback. Oracle Corp. (NASDAQ:ORCL), PepsiCo. Inc. (NYSE:PEP) and GlaxoSmithKline plc (NYSE:GSK) opened their wallets to scoop up targets on Monday. Despite the dealmaking, the markets remained in a funk, trying to make sense of Bank of America Corp.'s (NYSE:BAC) positive earnings announcement. Overall, the Dow fell 289.60, or 3.56%, to 7,841.73, while the Nasdaq dropped 64.86, or 3.88%, to 1,608.21.
Here's a rundown of Monday's biggest deals:
Oracle plans to acquire Sun Microsystems Corp. (NASDAQ:JAVA) for $7.4 billion, which breaks down to an offer of $9.50 per share cash, which is a 42% premium on the server maker's $6.69 a share Friday close. Sun shares closed up $2.46, or 36.77%, at $9.15. Oracle shares closed down 24 cents, or -1.26%, at $18.82.
Meanwhile, IBM Corp. (NYSE:IBM), which made a bid for Sun last month without an agreement, closed down 0.04% to $100.84 as revenue fell more than 11% to $21.7 billion.
In other deals, PepsiCo announced plans to buy out shareholders in its two biggest bottling affiliates in a $6 billion cash-and-stock debt deal. Shares of the food giant closed down $2.27, or -4.35%, at 49.86.
Lastly, GlaxoSmith will purchase Stiefel Laboratories Inc. for up to $3.6 billion. The Middlesex, England-based drugmaker agreed to pay $2.9 billion in cash for Stiefel and assume $400 million of net debt. GlaxoSmithkline's ADR in U.S. trading closed down 54 cents, or -1.77%, at $30.05. - Gerald Magpily
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