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Published September 1, 2009 at 4:35 PM
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 Welcome to Deal Stocks. In Tuesday's news are eBay Inc. (NASDAQ:EBAY), Bank of America Corp. (NYSE:BAC), CIT Group Inc. (NYSE:CIT), the Walt Disney Co. (NYSE:DIS), Electronic Arts Inc. (NASDAQ:ERTS), Viacom Inc.'s (NYSE:VIA) Paramount, Yahoo! Inc. (NYSE:YHOO), Citigroup Inc. (NYSE:C) and American International Group Inc. (NYSE:AIG) Investors bailed from the market fearing it has gotten ahead of itself moving up 50% since March. The Dow Jones Industrial Average fell 185.68 points, or 2%, to 9,310.6, while the Nasdaq closed down 40.17 points, or 2%, to 1,968.89.
- EBay Inc. (NASDAQ:EBAY) sold its VoIP unit Skype Technologies SA to a group of venture capital and private equity firms for $2.75 billion. The buyers are VC shops Andreessen Horowitz and Index Ventures (an early Skype investor) as well as buyout firm Silver Lake.
- Walt Disney Co.'s (NYSE:DIS) acquisition of Marvel Entertainment Inc. (NYSE:MVL) is affecting plenty of other stocks. (The Deal Pipeline subscribers can read the full story on that here.) The deal is seen as a setback for Electronic Arts Inc. (NASDAQ:ERTS), which was seen as potential Disney target, and Viacom Inc.'s (NYSE:VIA) Paramount unit, which is unlikely to be able to extend a recent distribution deal with Marvel. Additionally S&P put Disney on its watchlist in case Marvel' $4 billion price tag and the recession should weigh too heavily on the media company. J.P.Morgan Chase & Co. (NYSE:JPM) lowered its rating on Marvel from overweight to neutral.
- Starbucks Corp. (NYSE:SBUX) acquired a 50% share of a joint venture it does not own in France for an undisclosed price.
- American International Group Inc. (NYSE:AIG) lost $9.33, or 20.58%, to $36.00 as investors take profits from a company that more than tripled in April. The reality is the company has been slow to unload businesses to pay back its debt to Uncle Sam. As for the deals that have been struck, assets are ringing in at lower valuations than expected so CEO Robert Benmosche is pulling the plug on some auctions.
Also see: Corporate Dealmaker: Marvel licensing: Even bigger than you thought - Yahoo! Inc. (NYSE:YHOO) investor Carl Icahn plans on slashing his stake in the company to 4.48% from 5.45%.
- After it closes the $41.1 billion acquisition
of Schering-Plough Corp. (NYSE:SGP), Merck & Co. (NYSE:MRK) will
reorganize into five main units, with animal health and consumer
healthcare operating as separate business units.
On Wall Street: - Bank of America Corp. (NYSE:BAC) wants to repay about $20 billion of its $45 billion in federal aid and
end a loss-sharing arrangement with the government on Merrill Lynch
& Co.'s assets.
- Citigroup Inc. (NYSE:C) continues to slim down fast as the bank sold three credit card portfolios worth about $1.3 billion; while offers for its Bellsystem24 unit are due Tuesday.
- Goldman Sachs Group Inc. (NYSE:GS) CEO Lloyd Blankfein is at the top of the heap, according to Vanity Fair, which published its list of the 100 most powerful people on Tuesday.
In economic news:
- The Institute for Supply Management reported its manufacturing index rose to 52.9 in August.
- Sheila Bair, head of the Federal Deposit Insurance Corp., continues to
wage war against the Treasury's plan for a super-regulator (that's the
Federal Reserve if you've been on vacation), despite Geithner's failed
efforts to pummel her and a number of her regulatory minions into line.
- George White, Maria Woehr and Gerald Magpily
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VITAL SIGNS |
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Figures are calculated
according to the latest stock data available at approximately 4:00 pm
ET |
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September 1, 2009 |
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Benchmark |
Spread |
Change from previous day |
1 week ago |
1 month ago |
1 year ago |
|
LIBOR 1-MONTH |
0.26 |
-0.003 |
0.27 |
0.28 |
2.49 |
|
LIBOR 3-MONTH |
0.33 |
-0.013 |
0.39 |
0.48 |
2.81 |
|
TED |
0.20 |
+0.002 |
0.22 |
0.29 |
1.12 |
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Exchange |
Average |
Change from previous day |
1 week ago |
1 month ago |
1 year ago |
|
VIX |
28.93 |
+2.92 (+11.23%) |
24.92 |
25.92 |
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T-bond |
Current Price/Yield |
Price/Yield change |
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3-Year |
101-00+ / 1.39 |
0-07 / -.076
|
|
5-Year |
100-09.5 / 2.31 |
0-11 / -.073 |
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10-Year |
102-06+ / 3.36 |
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