Praecis Pharmaceuticals ( PRCS) enjoyed a stratospheric surge after pharmaceutical giant GlaxoSmithKline ( GSK) agreed to buy it for $5 a share, or about $54.8 million. The buyout price represents a premium of about 150% over Massachusetts-based Praecis's $2 closing price Wednesday. The companies expect the transaction to close in the first quarter of 2007. Praecis shares were trading up $2.90, or 145%, to $4.90. GlaxoSmithKline shares, meanwhile, were edging down 40 cents, or 0.8%, to $51.89. Coastal Financial ( CFCP) shot up on news that it would be bought by fellow Southeastern bank BB&T ( BBT). The deal is valued at $394.6 million, or $17.04 a Coastal share. Coastal, based in Myrtle-Beach, S.C., says the transaction will close in the second quarter. Its shares were gaining $2.22, or 15.4%, to $16.66. BB&T shares were dipping 6 cents, or 0.1%, to $44.21. Horizon Health ( HORC) shares also ballooned on merger news. The Lewisville, Texas-based health care provider will be sold to Tennessee's Psychiatric Solutions ( PSYS) for about $426 million. The acquisition values each Horizon share at $20. The transaction is expected to close in the second quarter. Horizon was adding $3.20, or 19.8%, to $19.33. Psychiatric was up $1.43, or 4%, to $37.51. Web service provider Onstream Media ( ONSM) soared after it announced a sweeping upgrade of its automation and video-search capabilities. The Pompano Beach, Fla.-based company said its technology now easily interfaces with social networking sites and video advertising, and that it allows customers to easily publish videos to the Internet in various formats. New video processing capabilities can also convert speech within videos to text, allowing for more efficient and accurate searches. Shares were up $1.16, or 54.7%, to $3.28.
Lifetime Brands ( LCUT) slumped after the kitchenware maker sharply cut its full-year guidance. The Westbury, N.Y., company now expects to bring in revenue between $450 million and $455 million in 2006, down from its previous target range between $480 million and $490 million. Earnings are now projected at $15 million to $16 million, or $1.10 to $1.15 a share, which compares with previous guidance of between $1.45 and $1.55 a share. Analysts polled by Thomson Financial are looking for full-year income of $1.48 a share on $485.5 million in sales. Shares were down $3.90, or 20%, to $15.54. International Assets Holding ( IAAC) continued its downward spiral a day after the firm swung to a loss in the fiscal fourth quarter and slid in extended trading. The Altamonte Springs, Fla.-based company lost $2 million, or 25 cents a share, in the quarter ended Sept. 30, compared with year-ago earnings of $1 million, or 13 cents a share. Revenue plunged to $3.9 million from $7.1 million a year ago. International blamed the bleak numbers on the standards of U.S. generally accepted accounting principles, which don't allow the inclusion of physical commodities into the calculations. Earnings would have otherwise reflected an additional gain of $6 million, International said. Shares were trading down $13.37, or 27.9%, to $34.56. Ultratech ( UTEK) dropped after it deflated its fourth-quarter outlook. The semiconductor-equipment maker now forecasts a loss of between 25 cents and 30 cents a share, compared with its previous loss prediction of between 10 cents and 15 cents a share. Revenue will probably sequentially decline 25% to 30%, whereas the previous forecast called for a sequential drop of only 8% to 10%. CEO Arthur Zafiropoulo says the company is working to decrease its costs in response to these developments, which will include letting go about 10% of its employees. Shares were losing $1.98, or 15.2%, to $11.06.