EMC Lifts Data Domain Offer; Matrixx Plunges 11%

Mayank Mehta
06 Jul, 2009
New York City

Nordstrom, Inc led gainers in the S&P 500 index with a rise of 4.6%. B+H Ocean Carriers announce obtaining waivers of certain loan covenant. EMC ups bid for Data Domain as NetApp receives regulatory approval. Matrixx Initiatives drops 11% after class-action lawsuit.

[R]1:00PM New York – Nordstrom, Inc led gainers in the S&P 500 index with a rise of 4.6%. B+H Ocean Carriers announce obtaining waivers of certain loan covenant. EMC ups bid for Data Domain as NetApp offer proceeds.[/R]

Of the stocks in S&P 500 index, 234 increased, 257 declined and 9 were unchanged.

Titanium Metals Corporation led the decliners in the S&P 500 index with a loss of 6.1% followed by losses in Massey Energy Company of 5.7%, in Cabot Oil & Gas Corporation of 5.6%, in Xto Energy Inc of 5.5% and in Chesapeake Energy Corporation of 5.2%.

Nordstrom, Inc led gainers in the S&P 500 index with a rise of 4.6% followed by gains in Time Warner Cable Inc 4.6%, in Sears Holdings Corporation of 4.5% and Eastman Kodak Company of 4.4%.

Other Movers

B+H Ocean Carriers Ltd ((BHO)) fell 10.7% or 42 cents to $3.50 after the shipping company said that during June, it was advised by its auditors that notwithstanding that waivers were being approved for the loan covenant breaches in place December 31, 2008, given the continuing deterioration of the shipping markets and the passage of time from year end to the issuance of their opinion they would review all of the Company’s loan covenants for potential technical covenant breaches during 2009.

Constellation Energy Group Inc ((CEG)) declined 1.0% or 28 cents to $25.91 after the Baltimore Circuit Court judge determined that constellation energy''s appeal was premature and should be reheard if needed after the Maryland public service commission completes its current proceeding related to the constellation energy-EDF Group nuclear joint venture.

Data Domain, Inc ((DDUP)) advanced 3.0% or 89 cents to $34.10 after the world’s largest maker of data storage computers EMC boosted its offer 12% to buy Data Domain to $33.50 per share in cash. The revised offer places the enterprise value of $2.39 billion on 71.2 million diluted shares compared to previous value of $1.8 billion. NetApp has offered in cash and stock $30 a share and Data Domain had said earlier that that offer was superior to the $30 a share offer from EMC.

NetApp says it received clearance from the Securities and Exchange Commission to buy Data Domain for $30 per share or $1.9 billion, in a cash and stock deal.

Denbury Resources Inc ((DNR)) fell 4.4% or 61 cents to $13.21 after the Plano, Texas based oil and natural gas producer is lowering its 2009 daily production guidance by 3,500 barrels of energy to an adjusted average of 47,500. Also as a result of the sale including that portion not yet closed, the company’s bank borrowing base was reduced from $1.0 billion to $900 million but the bank commitment amount remained unchanged at $750 million.

Foot Locker, Inc ((FL)) dropped 1.1% or 9 cents to $9.93 after the shoe retailer shares could rise up to 50% in the next year on media speculation that the company reorganization will help the company when the economy recovers.

Matrixx Initiatives, Inc ((MTXX)) the maker of Zicam Cold Remedy products slid 11.1% or 72 cents to $5.76 after the company said that a class-action lawsuit has been filed related to some of its products that may have been linked to loss of smell in patients.

News Corporation ((NWSA)) fell 1.0% or 4 cents to $8.56. PetSmart, Inc ((PETM)) climbed 2.4% or 8 cents to $21.35.

Sprint Nextel Corp ((S)) added 4.4% or $4.51 after the mobile phone company was upgraded to “hold” from “hold” at Auriga USA LLC.