U.S. Movers: AOL, Ashland, Radian, Warner Chilcott, Yahoo

Bikram Pandey
08 Nov, 2010
New York City

U.S. stocks traded lower. Ashland surged 10% after the company agreed to sell its distribution division to TPG. Warner Chilcott declined 10% after it estimated lower sales next year. Radian Group fell on investigation and convertible bonds offering. CommScope gained on the prospect of a rival bid.

[R]1:10 PM New York – U.S. stocks traded lower. Ashland surged 10% after the company agreed to sell its distribution division to TPG. Warner Chilcott declined 10% after it estimated lower sales next year. Radian Group fell on investigation and convertible bonds offering. CommScope gained on the prospect of a rival bid.[/R]

Of the stocks in the Dow, 10 increased, 20 decreased and none were unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, Hewlett-Packard Company led the gainers with a rise of 1.40% followed by increase in Bank of America Corporation of 1.13%, in Cisco Systems, Inc. of 1.07%, in Intel Corporation of 0.80%, in Microsoft Corporation 0.37%.

The Boeing Company led the decliners with a fall of 1.61%, followed by decline in The Travelers Companies, Inc. of 1.49%, in The Home Depot, Inc. of 1.32%, in Verizon Communications Inc. of 1.13%, in JPMorgan Chase & Co. of 1.00%.

Other Movers

Ashland Inc. ((ASH)) surged 10% or $5.10 to $56.04 after the automotive lubricant maker signed an agreement to sell its global distribution business known as Ashland Distribution, to TPG Capital for $930 million. The Ashland Distribution business has been a part of Ashland with revenues of $3.4 billion. TPG Capital is the global buyout group a leading private investment firm with more than $47 billion of assets under management.

CommScope, Inc. ((CTV)) increased 2.4% or 78 cent to $32.22 after the infrastructure solution provider entered into a merger agreement with The Carlyle Group in a transaction valued at approximately $3.9 billion. The transaction expected to close in the first quarter of 2011. Stock rose on the prospect of a higher bid from a rival.

Under the terms Carlyle will acquire all of the outstanding shares for $31.50 per share in cash. CommScope would be obligated to pay a $43.3 million break-up fee to Carlyle.

FuelCell Energy, Inc. ((FCEL)) soared 18.8% or 24 cents to $1.50 after the stationary fuel cell maker today announced the sale of a 2.8 megawatt DFC3000 power plant to be installed at a wastewater treatment plant operated by Inland Empire Utilities Agency, a municipal water district based in Chino, California.

GT Solar International, Inc. ((SOLR)) advanced 7.1% 63 cent to $9.46 after the polysilicon maker entered into a definitive agreement to repurchase shares of common stock from GT Solar Holdings, LLC. Under the terms GT Solar purchase 26.5 million shares at a price of approximately $7.66 per share for total purchase price of approximately $203 million. The company obtained a commitment from Credit Suisse for a senior secured credit facility of up to $200 million.

McDonald’s Corporation ((MCD)) fell 0.2% or 23 cent to $79.07 after the fast food chain operator said same store sales in October increased 6.5% on promotions and new products.

Princeton Review ((REVU)) after the entrance test preparation company was lowered by a broker.

Radian Group Inc. ((RDN)) plunged 11.8% or $1.18 to $8.77 after the credit enhancement company commenced an underwritten public offering of up to $350 million principal amount of its convertible senior notes due 2017. The company also said it received subpoena from the Department of Urban Housing and Urban Development.

Republic Airways Holdings Inc ((RJET)) dropped 9% after the regional airline said adjusted fourth quarter earnings to be no more than 10 cents a share.

Yahoo! Inc. ((YHOO)) gained 1% or 17 cent to $16.43 after AOL Inc ((AOL)) hired financial advisers to seek a buyout of the Internet portal.