U.S. Movers: AIG, Cisco, Sprint Nextel, Laclede Group

Mukesh Buch
17 Dec, 2012
New York City

AIG offers to sell $6.5 Billion of AIA shares. Cisco completed acquisition of privately held Cariden Technologies for $141 million. Sprint Nextel wins bid for Clearwire at $2.97 per share. Laclede Group agreed to buy two utilities from Southern Union valued $1.03 billion.

[R]10:10 AM New York – AIG offers to sell $6.5 Billion of AIA shares. Cisco completed acquisition of privately held Cariden Technologies for $141 million. Sprint Nextel wins bid for Clearwire at $2.97 per share. Laclede Group agreed to buy two utilities from Southern Union valued $1.03 billion.[/R]

American International Group, Inc. ((AIG)) climbed 1.6% or 57 cents to $34.51 after the insurance company began the sale in Hong Kong of its Asian unit AIA to raise $6.5 billion.

Cisco Systems Inc. ((CSCO)) slipped 3 cents to $19.83 after the network equipments maker completed the acquisition of privately held Cariden Technologies, Inc for approximately $141 million in cash.

Liberty Global, Inc. ((LBTYA)) gained 51 cents to $60.78 after the broadband and phone service provider said it would begin its stock buyback program of $1 billion to be completed during 2013. The new repurchase authorization is for series A and C common stock.

Sprint Nextel Corp. ((S)) added 5 cents to $5.60 after the holding company said today that it agreed to acquire nearly 50% stake in Clearwire Corp. that it does not currently own for $2.97 per share. The deal approved by the board of directors of Clearwire, amounting total payment to shareholders, other than Sprint, of $2.2 billion and valued the company at $10 billion.

The offer represents 128% premium to closing price of Clearwire the day before the Sprint-SoftBank first discussions were confirmed on October 11. The Clearwire and SoftBank transactions are expected to close in the mid 2013.

SunPower Corporation ((SPWR)) rose 1 cent to $5.42 after the solar panels maker agreed to settle the private securities class action suit against the company and certain current and former members of management for the payment of $19.7 million.

The Laclede Group, Inc. ((LG)) slumped 18 cents to $39.68 after the natural gas service provider agreed to buy two utilities from Southern Union Company an affiliate of ETE and ETP Pursuant to which Laclede will acquire the assets of Southern Union''s Missouri Gas Energy and New England Gas Company divisions. The value of the transaction is about $1.03 billion.

This transaction is expected to close before the end of third quarter of 2013.