( PD) were among the
winners Monday, soaring 29% after the company agreed to be acquired by
for $25.9 billion in cash and stock.
The sale price works out to $126.46 a share, a 33% premium over Phelps Dodge's closing price of $95.02 on Friday. Phelps Dodge shareholders will receive $88 a share in cash and 0.67 shares of Freeport-McMoRan for each share they hold. Phelps Dodge shareholders will own about 38% of the combined company upon the deal's closing, which is expected to be during the first quarter of 2007. Shares of Phelps Dodge were trading up $26.84 to $121.86, while shares of Freeport-McMoRan fell 69 cents to $56.71.
Equity Office Properties Trust
( EOP) rose 7% after the real estate investment trust agreed to be acquired by the Blackstone Group for about $19 billion. Private equity firm Blackstone will pay $48.50 a share in cash, or a premium of 9% to Equity Office's closing price of $44.72 on Friday. Including the assumption debt, the buyout is valued at $36 billion. The deal is expected to close during the first quarter of 2007. Shares of Equity Office were trading up $3.16 to $47.88.
Oregon Steel Mills
( OS) rose 8% after the company agreed to be acquired by Russian steelmaker
for about $2.3 billion in cash, or $63.25 a share. The price represents a 7% premium over Oregon Steel's closing price of $58.96 on Friday. "In the current steel environment, it is important to gain scale and expand market presence through consolidation," Oregon Steel said. Shares were trading up $4.50 to $63.46.
In another metals deal,
agreed to sell its nickel assets to Norilsk Nickel for $408 million. The company said the deal is in line with its plans to sell the nickel business, which is a noncore asset. The transaction is expected to close in the first quarter of 2007. Shares of OM Group were down $4.47, or 9%, to $45.75.
HCC Insurance Holdings
slid 9% after the insurance company said its CEO resigned amid a probe into stock-option grants. The company said its stock-option investigation turned up incorrect measurement dates for a significant number of employees from 1995 through 2005. Forensic accountant LECG, which was hired by the company to investigate the company's historical stock-option grant practices, believes the noncash charges associated with the grants will not exceed $37 million. The company said that it would continue to cooperate with the
Securities and Exchange Commission
, which has launched an informal probe into the company's stock-option practices.
HCC said CEO Stephen Way, who founded the company in 1974, will resign as chief executive but will stay on as chairman of the company. Frank Bramanti, an HCC veteran, will serve as HCC's new CEO. Shares of HCC were trading down $2.37 to $29.37.
jumped 14% after the death of the company's CEO prompted speculation of a buyout. The gaming company said its chairman, chief executive and majority shareholder Craig Neilsen, died in his sleep at his home in Las Vegas. President John Boushy will take over as CEO. Following the news, Keybanc upgraded the stock, saying the company has become a takeover candidate. Shares of Ameristar recently were up $3.52 to $29.20.
NYSE volume leaders included
( LU), down 1 cent to $2.61;
( NT), down 1 cent to $2.06; Phelps Dodge; Equity Office;
, down 57 cents to $28.53;
down 15 cents to $27.06;
, down 13 cents to $7.80; Freeport McMoRan;
, up 28 cents to $33.48; and
heavy-volume movers included
, up 34 cents to $29.74;
, up 17 cents to $22.27;
, up 4 cents to $5.51;
, down 9 cents to $26.84;
Level 3 Communications
, up 8 cents to $5.27;
, down 12 cents to $18;
Sirius Satellite Radio
, unchanged at $4.05;
, down 1 cent to $19.45; and
Marvell Technology Group
, up 72 cents to $19.77.