Takeover Rumors Boost Rio Tinto

Editor's Note: In this feature from Stockpickr, we highlight lists of stocks that have been upgraded by analysts, are experiencing activist situations or some other market moving events.

Rumors of the Day: Shares of Rio Tinto(RTP Quote) rose in overseas trading on rumors mining rivals BHP Billiton(BHP Quote) and Companhia Vale do Rio Doce(RIO Quote) could make a joint bid for the company, according to Dow Jones Newswires, citing market rumors. BHP Billiton gained $3 to $65.79, while Rio Tinto is up $12.10 to $297.91.

Today's Hot List: RBC Centura Banks, a wholly owned subsidiary of Royal Bank of Canada(RY Quote), will acquire Birmingham-based Alabama National Bancorporation(ALAB Quote), parent of 11 subsidiary banks and other affiliated businesses in Alabama, Florida and Georgia. Under the agreement, shareholders of Alabama National will receive $80 per share payable in cash, RBC shares or a combination of each, valuing the deal at approximately $1.6 billion.

The total transaction consideration will consist of one half cash and one half RBC shares. Royal Bank of Canada dropped 46 cents to $51.02 as Alabama National rocketed $23.92, or 45%, to $77.04.

Teen retailer Pacific Sunwear of California(PSUN Quote) said same-store sales increased 9.6% in August, vs. the consensus estimate of a 1.8% gain. The company reported $181.6 million in total sales for the four weeks of fiscal August ended Sept. 1, an increase of 13.6%.

Pacific Sunwear believes that its August sales performance is attributable in part to the later start of back to school in Florida and Texas that occurred in fiscal August this year, vs. fiscal July last year. The stock increased $1.01 to $15.26.

Analyst Upgrades: JPMorgan upgraded Cognos(COGN Quote) to overweight from neutral. Underlying demand for the company's software and services is strong, the firm said. Margins should also benefit from the Applix(APLX Quote) acquisition. Cognos shares were better by 10 cents to $41.30.

Latest Activist Situations: In an amended regulatory filing on Flamel Technologies(FLML Quote), OSS Capital Management disclosed it had raised its stake in the drug delivery device maker to 26.5%. In an August active regulatory filing, the firm disclosed a 25.6% stake in the company. Dan Loeb's Third Point has a 9.2% passive stake in Flamel and the company is already under activist pressure from Redwood Asset Management, which is calling for a sale. Shares gained 8 cents to $9.70.