Some of the names on the move ahead of the open.» Read More
Stocks closed sharply higher on a big day for corporate mergers, but investors may turn their attention back to the economy on Tuesday.
Mergers and acquisitions momentum has driven the markets today. Four big deals were initiated: Bank of New York and Mellon Financial; LSI Logic and Agere Systems; Pilgrim’s Pride and Gold Kist; and Station Casinos got a buyout offer from a group including its chairman for $4.7 billion.
CNBC's Bob Pisani gave his insight--here are more of the details. LSI Logic will acquire Lucent spin-off Agere Systems for $4 billion in stock. The deal values Agere at $22.81 per share. That’s a 28% premium to Friday’s closing price of $17.79. Shares of Agere have jumped in pre-market trading today – reaching $20.71.
Agere is one of the biggest makers of communication chips. They're being acquired by rival LSI Logic in a stock for stock deal--2.16 shares of LSI stock for each Agere share--$4 bl, or $22.81 a share, a 28% premium. It's an important deal--Agere sells to Alcatel-Lucent, Nortel and especially Seagate and Samsung Electronics.