The first government stimulus was embraced by the markets, but nearly seven months later, talk of a possible second one has investors spooked by fears the economic recovery has stalled. Overall, the Dow fell 163.09, or 1.96%, to 8,161.78, while the Nasdaq slipped 41.23, or 2.31%, to 1,746.17.
Their worry wasn't helped by one company that did not see the trickle-down effect from the first stimulus, auto parts maker Lear Corp., which filed an expected bankruptcy on Tuesday as a bevy of middle-market deals were announced.
Lear secured up to $500 million in debtor-in-possession financing from a consortium led by J.P. Morgan Chase & Co. (NYSE:JPM) and Citigroup Inc. (NYSE:C), according to an SEC filing.
Meanwhile, M&A dealflow was dominated by middle-market transactions:
- IAC/InterActiveCorp (NASDAQ:IACI) purchased People Media for $80 million from private equity firm American Capital Ltd. (NASDAQ:ACAS). Shares of IAC closed down 34 cents, or 2.11%, to $15.80.
- Deutsche Bank AG (NYSE:DB) has agreed to sell WorldWide Plaza in New York City for $600 million to developer George Comfort & Sons and partner RCG Longview. Deutsche Bank ended down 38 cents, or .65%, at $58.01.
- Boeing Co. (NYSE:BA) will pay $580 million for a Dreamliner aircraft plant. (The Deal Pipeline subscribers can read more here.) Shares of Boeing fell $1.54, or 3.80%, to $39.02.
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Gerald Magpily
