|
CNNfn market movers
|
 |
June 28, 1999: 2:41 p.m. ET
Energy stocks remain highly charged while financial sector rebounds
|
NEW YORK (CNNfn) - Energy stocks, fueled by a round of billion-dollar deals, found they had plenty in reserve heading into Monday afternoon trading, while financial sector stocks emerged finally from their Federal Reserve doldrums.
Nalco Chemical Co. (NLC) shares soared more than 20 percent after the water treatment chemical maker agreed to be acquired by the French utility company Suez Lyonnaise des Eaux for $4.1 billion. Naperville, Ill.-based Nalco jumped 8-7/8 to 51-3/8.
The deal left investors buoyed other water treatment chemical makers as well. Cytec Industries (CYT), for one, found its shares trading 3-5/16 higher to 29-5/8 as investors bet on further consolidation within the industry.
Investors also tapped into natural gas supplier Wicor Inc. after Wisconsin Energy Corp. agreed to purchase the company for $1.27 billion. Wicor (WIC) shares rose 1-1/2 to 28-1/16 in early trading, while Wisconsin Energy (WEC) shares slipped 9/16 to 16-1/2.
Little-known energy company Baycorp Holdings (MWH) more than held its own with investors after published reports said it would form a new Internet company to buy and sell megawatts of energy. The Dover, N.H.-based public utility rose 1-1/16 to 6-1/2 in early afternoon trading.
Upping the ante
Outside the energy sector, Rental Service Corp. attracted some serious buyers after Atlas Copco AB agreed to merge with the equipment rental company for $730 million. That trumped the $553 billion bid that was withdrawn Monday by United Rentals (URI), and sent Rental Service's (RSV) stock up 4-1/2 to 28-9/16.
Chesapeake Corp.'s stock cleaned up on a new deal with Georgia Pacific (GP), which agreed to combine its commercial tissue business with Chesapeake's Wisconsin Tissue unit. Chesapeake (CSK) stock rose 3-5/16 to 38-1/4.
But few stocks could keep pace with industrial electronics component and semiconductor distributor Marshall Industries (MI). Its shares surged 15-5/8, or nearly 80 percent, to 35-1/4 after being acquired by Avent Inc. for $830 million, including the assumption of $160 million in debt.
Meanwhile, the financial sector emerged from its summer slump as investors bet the market has already digested an expected quarter-point rate hike from the Federal Reserve. Yet to be digested, however, were new deals announced Monday.
New York brokerage Lehman Brothers (LEH) climbed 3-15/16 to 57-3/8 after it announced a new strategic partnership with Fidelity Investments.
Money manager Amvescap also had investors placing funds in its shares after a published report said Goldman Sachs (GS) was looking to buy the money manager. That was enough to have Amvescap (AVZ) shares trading 2-5/8 higher to 45-1/4.
On the downside, stock of the tool maker Milacron Inc. couldn't hold together Monday after announcing second-quarter earnings would be lower on soft demand. Milacron (MZ) fell 3 to 17-11/16 on the news.
SS&C Technologies (SSNC) shares slipped 1-1/2 to 6-7/8 after the financial software maker warned it wouldn't meet analysts' expectations for the second quarter because of a $6.5 million shortfall in license revenue.
Worldport Communications Inc. (WRDP) felt the weight of the world on its shoulders after announcing the Nasdaq market was considering delisting the company. Investors, perhaps anticipating the news, lowered the telecommunications company's shares 4-7/32 to 4-1/8.
|
|
|
|
|
 |
|
