Stocks Surge Amid M&A Rumors and Earnings Reports

Strategic Insights -

Several companies' shares rose significantly amid rumors of potential mergers and acquisitions and upcoming quarterly earnings reports. Applied Signal Technology Inc. (APSG) shares surged after the company announced it would consider a possible merger or sale to improve shareholder value. Wilmington Trust Corp. (WL) shares also spiked after reports emerged of the bank being in talks with two Canadian banks about a potential buyout. Additionally, several companies, including Coca-Cola Enterprises Inc. (CCE) and Green Plains Renewable Energy Inc. (GPRE), announced positive developments that contributed to the market's upward trend.

Key Takeaways:

  • Applied Signal Technology Inc. (APSG) shares rose by 13% at the close and another 6.8% to $33.45 in after-hours trading after announcing consideration of a possible merger or sale.
  • Wilmington Trust Corp. (WL) shares surged by 8.6% in the regular session and rose another 2.9% to $9.01 in the after-hours session after reports emerged of talks with two Canadian banks about a potential buyout.
  • Coca-Cola Enterprises Inc. (CCE) raised its quarterly dividend by a third from the level it paid under its old operating structure.
  • Green Plains Renewable Energy Inc. (GPRE) completed its purchase of Global Ethanol LLC and plans to expand capacity by 31%.
  • Value Line Inc. (VALU) announced a special dividend of $2 per common share, to be paid in lieu of its regular quarterly dividend of 20 cents.
  • Several companies, including A. Schulman Inc. (SHLM), Boyd Gaming Corp. (BYD), Invesco Ltd. (IVZ), and Lorillard Inc. (LO), are expected to deliver quarterly reports on Monday.

Statistics:

  • APSG shares rose by 20% (13% at the close and 6.8% in after-hours trading).
  • WL shares rose by 11.5% (8.6% in the regular session and 2.9% in after-hours trading).
  • CCE raised its quarterly dividend by 33% compared to the level paid under its old operating structure.
  • GPRE plans to expand capacity by 31% following the completion of its purchase of Global Ethanol LLC.
  • VALU's special dividend is worth $2 per common share.

Sources:

  • Dow Jones Commodities News Select (via Comtex)
  • Bloomberg News