Monday Morning Musings
Good Monday Morning. It sure was a busy weekend for deal making.
Freeport-McMoRan (FCX) announced it will acquire Phelps Dodge (PD) for $25.9 billion in cash and stock. That equates to roughly $126.50 per share, a 33% premium to Friday's close. Amazing, considering recent trends in copper prices.
Equity Office Properties (EOP) agrees to be acquired by The Blackstone Group for $36 billion. This equates to roughly $48.50 per share, 8% above Friday's close. What does this say about Sam Zell's view of real estate?
Evraz Group will acquire Oregon Steel (OS) for $63.25, a slight 7% premium to Friday's close. And BofA will acquire Schwab's U.S. Trust division for $3.3 billion.
These deals make it tough to stay short stocks over the weekend. I nearly took a short position in PD recently, but didn't. Better to be lucky than good sometimes.
In other news and notes:
- Demand for AAPL's new iPod Shuffle is soaring
- Merrill ups RIMM tgt. to $165
- VAR authorizes another 4.5M share buyback
- Large insider selling by CEO of MSTR
- FDA approves sale of silicone gel implants (AGN, MNT)
- LOW beats EPS, lowers guidance
- Japan's stock market falls -2.3%, most in 10 weeks
long AAPL, VAR