Monday Market Movers: Raytheon to Acquire Applied Signal, Icahn Boosts Chesapeake Energy Stake, and More

Strategic Insights

Dec 19, 2010 — 1 min read

Companies expected to actively trade in Monday's session include Applied Signal Technology Inc., Chesapeake Energy Corp., and Sara Lee Corp. Defense contractor Raytheon Co. plans to acquire intelligence and reconnaissance products company Applied Signal for approximately $490 million. Billionaire activist investor Carl Icahn has built a 5.8% stake in Chesapeake Energy, following previous discussions with management about improving shareholder value. Sara Lee's talks on selling itself to Brazil's JBS S/A have hit a snag due to price disagreements.

Key Takeaways:

Raytheon Co. will acquire Applied Signal Technology Inc. for approximately $490 million, paying $38 per share, an 8.5% premium to Applied Signal's closing price on Friday.
Billionaire activist investor Carl Icahn has built a 5.8% stake in Chesapeake Energy Corp. and has held talks with management about improving shareholder value.
Chesapeake Energy Corp. shares were up 2.5% to $23.87 in premarket trading.
Sara Lee's talks on selling itself to Brazil's JBS S/A have hit a snag over price disagreements.
Altw shopping JBS shares were recently flat.
AT&T Inc. will pay $1.93 billion for a swath of spectrum licenses from Qualcomm Inc. as AT&T looks to bolster its fourth-generation service.

Statistics:

Raytheon Co. will pay approximately $490 million to acquire Applied Signal Technology Inc.
The acquisition price of $38 per share represents an 8.5% premium to Applied Signal's closing price on Friday.
Chesapeake Energy Corp. shares were up 2.5% to $23.87 in premarket trading.
Billionaire activist investor Carl Icahn's stake in Chesapeake Energy Corp. valued at approximately 5.8% of the company's outstanding shares.

Sources:

Dow Jones Commodities News Select via Comtex, Dec 20, 2010
Bloomberg News, December 20, 2010 (citing two unnamed sources with direct knowledge of the situation)
Comtex SmarTrend Alert, as of Thursday, December 16, 2010

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