NEW YORK (
( MCCC) was one of several stocks trading near $5 moving on above-average volume Tuesday after the company said it has received a bid to be taken private.
said it has received a nonbinding proposal from Chairman and CEO Rocco Commisso to take the company private at $6 per share in an all-cash deal, representing a 12.6% premium to Friday's closing price.
Alliance Bernstein analyst Craig Moffett writes in a research note that still low equity valuations have "made privatization a very attractive course" for public cable operators. "A combination of low capital intensity, and therefore high free cash flow, and access to very low rates in the debt markets has translated into a limited need for access to public equity markets for U.S. cable operators," he writes.
Mediacom shares jumped by 79 cents, or 14.8%, to $6.12. Volume topped 233,000 shares in the first 30 minutes of trading, compared to the 50-day average daily volume of 412,000, according to the
continued to rally, rising 13 cents, or 12.3%, to $1.17. On Thursday,
announced a retail deal with
. Volume topped 279,000 shares, compared to the 50-day average daily volume of 658,000.
shares climbed by 9 cents, or 7%, to $1.44 after the company said it will present interim data from the phase 1 clinical trial of its subsidiary's cancer drug candidate CALAA-01 at the 2010 American Society of Clinical Oncology (ASCO) meeting on June 6. Volume topped 88,000 shares, compared to the 50-day average daily volume of 1.65 million.
On the downside,
( MSHL) shares plunged by $1.58, or 39.5%, to $2.42 after the company said its cancer drug phenoxodiol failed a late-stage study. Results showed the drug did not significantly improve progression-free survival or overall survival in women with recurrent ovarian cancer, the company said. Volume topped 19,000 shares, compared to the 50-day average daily volume of 4,000.
-- Written by Robert Holmes in Boston
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