The economy is obviously still fragile. Investors fled the markets Tuesday as the Consumer Confidence Index slipped to 49.3, down from its revised May level of 54.8. The lower CCI has translated into softer sales that have forced some companies to look into mergers to survive. Bank of New York Melllon Corp. (NYSE:BK) pulled off a deal while Broadcom Corp. (NASDAQ:BRCM) sweetened its bid for Emulex Corp. (NYSE:ELX) . Overall, the Dow finished down 82.38, or 0.97%, to 8,447 while the Nasdaq fell 9.02, or .49%, to 1,835.04.
Shares of Bank of New York fell 40 cents, or 1.35%, to $29.31 as it acquired a minority stake in International Derivatives Clearing Group, a unit of Nasdaq OMX Group Inc. (NASDAQ:NDAQ).
Gerald Hassell, president of Bank of New York, said in a statement:
This strategic partnership with NASDAQ OMX provides our buy side and
sell side clients with a flexible platform that meets their derivatives
trading, clearing and servicing needs. We will continue to support the development of market infrastructure that enhances the transparency and stability of the global financial markets by addressing counterparty and systemic risk concerns.
Lastly, Broadcom raised its tender offer for Emulex to $11.00 per share in cash from $9.25,
representing a total equity value of approximately $912 million. Shares of Broadcom fell 12 cents, or .48%, to $24.79. - Gerald Magpily
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