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Telecommunications equipment industry

Market Activity Heats Up: Mergers and Acquisitions Drive Stocks

Strategic Insights

— 1 min read

Investors are bracing themselves for merger-and-acquisition activity, as several major companies announce their plans to acquire or be acquired. Smithfield Foods' acquisition of Premium Standard Farms for $810 million has sent PORK shares soaring, while SFD's shares have dropped. Meanwhile, Symbol Technologies is reportedly being sold to Motorola, with the auction expected to conclude in the next several days.

Key Takeaways:

  • Smithfield Foods' acquisition of Premium Standard Farms is worth approximately $810 million, with SFD expecting the deal to be accretive as soon as the merger is complete.
  • Premium Standard Farms' shares have rallied over 14%, reaching a new annual high, while SFD's shares have dropped more than 2%.
  • Symbol Technologies is reportedly being sold to Motorola, with the auction expected to conclude in the next several days, potentially setting a 20% premium to SBL's $3.2 billion market capitalization.
  • The New York Board of Trade (Nybot) has sold a seat for a record-setting price of $950,000, with a seat now being offered at $1,050,000.
  • IntercontinentalExchange (ICE) has been boosted by firms like Banc of America Securities, which has lifted its rating on ICE to "buy" ahead of Monday's opening bell.
  • Exxon Mobil (XOM) is responsible for a large part of the upward move in the Dow Jones Industrial Average (DJIA) and the S&P 500 Index (SPX), with shares currently up over 2.5%.

Statistics:

  • Smithfield Foods' acquisition of Premium Standard Farms is worth approximately $810 million, with SFD expecting the deal to be accretive as soon as the merger is complete.
  • Short interest in SFD currently stands at 6.8 times the equity's average daily trading volume.
  • Symbol Technologies' shares have rallied nearly 14% today to a new 52-week peak.
  • The New York Board of Trade (Nybot) seat sold for a record-setting price of $950,000.
  • IntercontinentalExchange (ICE) shares are trading nearly 3% higher this morning.
  • Exxon Mobil (XOM) has a market capitalization of nearly $400 billion and is responsible for a large part of the upward move in the DJIA and the SPX.

Sources:

  • Schaeffer's Market Blog, September 18 edition
  • Saturday's Wall Street Journal
  • Raymond James
  • Thomas Weisel
  • RBC Capital Markets
  • Banc of America Securities

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