Fuqi Down on SEC Probe; Symantec Steady

Shares of Fuqi International dropped in extended trades after the company said it's the subject of a formal probe by the SEC, while Symantec built on gains in the regular session.
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NEW YORK (

TheStreet

) --

Fuqi International

(FUQI)

fell sharply in extended trading late Wednesday after the China-based jewelry company disclosed the

Securities and Exchange Commission

has opened a formal investigation of its failure to meet filing requirements.

The company said in a Form 8-K filing that it's received a subpoena from the SEC for certain documents and that it plans to "fully cooperate" with the investigation.

The stock was the biggest decliner in afterhours action, according to

Nasdaq.com

, dropping 19% to $5.15 on volume of a little less than 76,000. Through Wednesday's close at $6.35, the stock was down 64% so far in 2010. The

big hit

came in March when the company announced major accounting problems and a scaled-back outlook.

Fuqi has now been working for months to restate past results for fiscal 2009, placing its continued listing on the Nasdaq in jeopardy. The company received an additional noncompliance notice from the Nasdaq on August 20. On that date, it said it has until Sept. 28 to file its Form 10-K for fiscal 2009 with the SEC.

Meantime, shares of security software maker

Symantec

(SYMC) - Get Report

held their own in afterhours action on Wednesday, building slightly on a plus 4% gain in the regular session that was rooted in

speculation

that

Microsoft

(MSFT) - Get Report

might have the company in its sights.

Tech M&A has been booming of late, most notably with the bidding war between

Hewlett-Packard

(HPQ) - Get Report

and

Dell Computer

(DELL) - Get Report

over

3PAR

(PAR) - Get Report

. The deal most pertinent to Symantec, however, is

Intel's

(INTC) - Get Report

August 19 agreement to purchase its main rival

McAfee

(MFE)

for roughly $7.7 billion.

Based on Wednesday's close at $14.58, Symantec shares had surged roughly 16% from their close at $12.59 on August 18, the session prior to the Intel-McAfee announcement. The company declined comment to

TheStreet

on the Microsoft speculation earlier Wednesday.

The stock was able to tack on 7 cents to $14.65 in extended trading with volume running to another 2.1 million in addition to the 39 million shares that changed hands in the regular session.

A standout gainer in extended trades was

Santarus

(SNTS)

, which got a lift after striking a licensing deal for a Type 2 diabetes drug.

Santarus reached terms for the exclusive manufacturing and commercial rights to Cycloset tablets in the U.S. with privately held companies S2 Therapeutics and VeroScience LLC. The deal calls for Santarus to pay an upfront fee totaling $5 million, and then pay certain product royalties to S2 and VeroScience while recording all Cycloset sales.

The stock jumped almost 15% in late trades to $2.55, although volume was less than 20,000. Santarus expects a commercial launch of Cycloset in November.

--

Written by Michael Baron in New York.

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Michael Baron

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