(Updated from 7:10 a.m. EDT)
was burning bright and hot in preopen action on news of its acquisition in the biggest nonphone tech deal ever.
Fiber optics manufacturer
agreed to buy rival SDL in a stock deal worth $41 billion, or $441.51 per SDL share.
SDL soared 79 11/16 to 375 in premarket trading, according to
. It had traded as high as 396 on
but last traded at 332 1/4. JDS Uniphase, meanwhile, was lately trading at 105 on Instinet, down 10 5/16 from last week's close. It last traded at 101.625 on Island, which uses decimal pricing.
In other company news,
and its 75%-owned biotech subsidiary,
, for $1.9 billion in stock and cash.
S&P 500 futures on
lately were up to 1494.9, about a point above
fair value and indicating a flat opening. The thinly traded
futures were off 6.5 to 3871.
After midsession, Europe's major indices were mixed, with France's
down 0.2% and the U.K.'s
up 0.1% (see today's
European Midday Update for more). Japan's
gained 1% overnight, while Hong Kong's
Earlier: SDL Gains Strongly in Europe
LONDON -- Giving investors more to think about than the bevy of corporate earnings due out this week,
, the fiber-optic company, said Monday that it would buy
for $41 billion in stock.
The deal, the largest ever in the technology sector outside of telephony, values SDL at nearly a 50% premium over Friday's closing price of 295 5/16.
Monday SDL shares traded in Germany jumped 100 euros, or 32.3%, to 410 euros ($390), on the news, while shares of JDS dipped 13.50, or 11%, to 109. (Like those of many U.S. companies, shares of SDL and JDS are also listed on some foreign exchanges.)
The companies will be holding a conference call at 8 a.m. EDT to discuss the deal, which will allow the duo to speed up the delivery of certain fiber-optic products.
Outside of the vortex created by this deal, other U.S. stocks traded in Europe were quiet.
"I would've thought we would've had a good start to the day," said David Smith, managing director of
in London, given the way the U.S. market closed on Friday. "And suddenly the sun's gone in again."
At 6:30 a.m. EDT, the September
S&P 500 futures were down 0.3 points, or 1.24 points below
fair value and not much of an indication for the open. The
futures were 8 points lower to 3869.5, also little indication for large-cap tech stocks in the early going. Fair value helps determine the tone of futures trading, often a good indication for how the securities market will open.
"We've got a lot of corporate results coming out this week and people are waiting what happens with them," Smith said.
Earnings season will kick off today when
reports its second-quarter results. Analysts surveyed by
First Call/Thomson Financial
expect the aluminum company to earn 46 cents a share, compared with 32 cents a year earlier. Alcoa shares were not traded in Germany Monday morning.
Also in the hopper are
Great Atlantic & Pacific
New York Times
report results. The full week's
earnings calendar is published separately.