H-P Further Extends Mercury Offer

Elena
26 Oct, 2006
New York City

Hewlett-Packard agreed to acquire the software maker in late July for $4.5 billion, or $52 a share, with the offer being extended until October 27. H-P is extending the offer again, this time until November 1. H-P said that approximately 38.9 million Mercury Interactive shares had been tendered as of October 24, short of the 50.1% majority it needs to complete the deal.

[R]8:00AM Hewlett-Packard extended its offer for Mercury Interactive.[/R]
Hewlett-Packard Co. ((HPQ)) announced late Wednesday that it was further extending its tender offer for the shares of software-maker Mercury Interactive Corp. ((MERQ)). Hewlett-Packard agreed to acquire the software maker in late July for $4.5 billion, or $52 a share, with the offer being extended until Oct. 27. Now, H-P is extending the offer again, this time until Nov. 1. H-P said that approximately 38.9 million Mercury Interactive shares had been tendered as of October 24, short of the 50.1% majority it needs to complete the deal. The company also said it might waive certain conditions it had previously asked for to complete the tender offer, but it will not wave the ‘minimum condition’ of having a majority of the shares tendered. Mercury Interactive had 86.98 million shares outstanding for the year ended Dec. 31, 2005. For 2005, Mercury Interactive swung to a loss of $100 million, or $1.15 a share, from a profit of $53.8 million, or 53 cents a share, in 2004. The maker of software released Wednesday partial results for Q3, saying revenue rose between 20% and 22% from the same period a year earlier. The company didn''t report a quarterly profit.


[R]7:30AM HK, Japan surge, lead Asian markets higher on FOMC, oil stocks.[/R]
Asian markets finished higher on Thursday. In Tokyo, the Nikkei 225 Stock Average advanced 0.7% to 16811.60. As oil futures pulled back above the $60 mark overnight in U.S. trading, Inpex rallied 4.9%.

Exporters gained too. Honda closed up 2.2% after stating record first-half profits yesterday and Toyota finished 0.6% higher after hitting an all-time high in intraday trading. Nissan, which reported earnings after the market close, posted a 0.9% gain. There was a a mixed performance from consumer-electronic companies. Sharp finished down 0.2% despite reporting a 28% rise in its fiscal first-half net profit.

In Hong Kong, the Hang Seng Index set a record closing high, gaining 1.1% to 18353.74. China Mobile led the advance, the second-biggest stock in the index, which advanced 3.8%.Shares of CNOOC rose 1.7%. Australia S&P/ASX 200 finished 0.7% higher and New Zealand NZSX-50 advanced 1% and Taiwan Weighted Price Index gained 0.3%.

Telecommunication and tech stocks also led South Korean shares higher on expectations for more positive fourth-quarter earnings. The Korea Composite Stock Price Index, or Kospi, rose 0.2% to 1373.65. Hynix Semiconductor gained 0.6% despite reporting lower-than-expected numbers for the third quarter. SK Telecom shares rose 1%, despite posting a net profit decline of 22%.


[R]6:30AM European markets advance Thursday morning on earnings and oil.[/R]
European markets were higher in early morning on Thursday. The FTSE 100 in London climbed 0.4% to 6,239.2, Frankfurt Xetra Dax added 0.4% to 6,291.6, and the CAC 40 in Paris gained 0.5% to 5,448.52.

Advancers

Early advancers included Telenor, the Norwegian telecom operator, reporting forecast-topping earnings and announcing its agreement to sell its satellite services unit for a profit. Its shares added 5.9%.

Renault led European carmakers higher. Its 1.2% decline in nine-month sales was better than expected. Its shares gained 1.2%. The German carmaker US Chrysler unit made losses on the company, but these were counterbalanced by strong performances at Mercedes and its truck division. DaimlerChrysler shares added a further 0.8%.

Takeover talks gave German steelmaker ThyssenKrupp a boost after rumours that Nucor, the US steel manufacturer, was on the point of making an offer. Thyssen declined to comment, but the shares gained 3.2%.

Decliners

Chocolate and soda maker Cadbury Schweppes announced that the situation in Nigeria influenced its performance in the third quarter. Its shares dropped 1.3%

Another decliner was British drug company AstraZeneca, trading down 3.7%, following its statement that it no longer plans to develop NXY-059 in acute ischemic stroke.

Oil and gold

Light, sweet crude oil for December delivery was up 13 cents to $61.53 a barrel on the NYME. Prices at London ICE Futures exchange also moved modestly higher. Brent crude rose 18 cents to $62.23 a barrel.

Gold opened Thursday at a bid price of $592.60 a troy ounce, up from $587.40 late Wednesday.

Currencies

The euro rose slightly against the U.S. dollar Thursday after the U.S. Federal Reserve left interest rates unchanged and the president of the European Central Bank warned that the bank would adjust its own rates if needed. The euro bought $1.2657 in morning European trading, compared with $1.2615 in New York late Tuesday. The British pound advanced to $1.8839, up from $1.8793. The dollar was lower against the Japanese yen, falling to 118.71 yen from 118.98 yen.