Stocks in Motion: SouthTrust

Updated from 12:13 p.m. EDT

Shares of SouthTrust(SOTR) rose Monday after the bank agreed to be acquired by Wachovia(WB) for $14.3 billion.

The acquisition allows Wachovia to accelerate its planned expansion into Texas and makes it the No. 1 bank in the Southeast, with 18% deposit share. SouthTrust holders will get Wachovia stock worth $41.82 a share.

The merger is expected to generate about $255 million in annual savings after a 15-month integration period. The projected annual cost savings equals 36% of SouthTrust's annual expenses. Shares of Southtrust traded up $4.57, or 13.3%, to $39.37 on volume of 27.1 million shares while shares of Wachovia traded down $1.98, or 4.2%, to $45.02.

Oxford Industries(OXM) rose after the company said it would acquire clothing retailer Ben Sherman and report stronger-than-expected fourth-quarter earnings and sales. Oxford Industries will pay Ben Sherman $146 million in cash. As a result of the acquisition, Oxford expects to add about $150 million in sales and about 20 to 25 cents in earnings during fiscal 2005. Shares of Oxford Industries traded up $7.40, or 20.5%, to $43.50.

Credit-card company Advanta(ADVNA) rose after it agreed to terminate all outstanding litigation with Bank of America(BAC). As a result of the agreement, Advanta expects to net $61 million in the quarter that the approval is received. Advanta also will have $18 million in unused tax deductions, which the company has not yet recorded. The total benefit, including the $61 million payment, will increase the company's book value by about $2.45 a share. Shares of Advanta traded up $1.70, or 9.3%, to $19.97.

Shares of Goodyear(GT) moved higher after the tire and rubber maker reported a narrower first-quarter loss. The company reported a loss of 44 cents a share for the first quarter on sales of $4.3 billion. Excluding one-time items, the company reported a loss of 17 cents a share. Analysts polled by Thomson First Call were looking for the company to lose 25 cents a share. The company was helped by stronger pricing, a better product mix, and an estimated $200 million positive impact from currency translation. Shares of Goodyear traded down 15 cents, or 1.5%, to $9.74.