Clear Channel Communications Inc. kicked off the week's biggest stories, following news that the radio and media company's stalled buyout was back on track.
Clear Channel and buyout firms Thomas H. Lee Partners and Bain Capital had accused six banks of not following through on their commitments to finance the acquisition, first announced in November 2006.
But a revised agreement calls for the deal to be financed at $36 per share, below the prior price of $39.20 per share. That lowers the value of the deal to $17.9 billion from $19.5 billion.
The stock soared $2.87, or 9.6 percent, to close at $32.87 in nearly five times average volume.
Shares of Clear Channel finished higher on Tuesday and climbed as the week continued; trading volume remained above normal.
On Friday, shares finished flat at $34.84, but still finished 16.1 percent higher for the week.
Tuesday's hot stock was Hewlett-Packard Co., which revealed plans to buy technology services company Electronic Data Systems Corp. for $13.2 billion, or $25 per share.
In nearly eight times average trading volume, the stock declined $2.56, or 5.5 percent, to close at $44.27, as investors questioned the risky purchase of EDS, which has posted weak profit margins.
Shares finished higher as the week continued. Banc of America Securities analyst Scott D. Craig touted the deal, saying it's an opportunity for HP to drive long-term growth.
On Friday, the stock rose 56 cents to close at $47.29.
Macy's Inc. on Wednesday posted first-quarter results that topped Wall Street expectations, lifting the stock 87 cents, or 3.6 percent, to $24.93.
Adjusted profit of 2 cents per share topped expectations for a 2-cent loss, and analysts attributed the strong quarter to efforts to cut costs.
On Friday, Macy's said FAO Schwarz will open toy stores in about 700 of its department stores over the next couple years. The stock declined 10 cents to close the day at $25.22.
CBS Corp.'s plan to buy CNET Networks Inc. for $1.8 billion, or $11.50 per share, lifted shares of CNET $3.46, or 43.5 percent, to $11.41 in trading volume nearly 32 times average. CNET Networks is an online news and information company that focuses on technology news, reviews and entertainment.
On Friday, Banc of America Securities analyst Brian P. Fitzgerald said he expected the deal to close at the current price and not face any regulatory pressure.
Shares declined 4 cents to finish at $11.37.
Zoltek Cos. shares gained $4.47, or 16.9 percent, to $30.98 on Friday on trading volume of around 4.1 million shares, far above average daily volume of 1.1 million shares. The maker of carbon fibers used in wind turbine blades posted a fiscal second-quarter profit, versus a year-ago loss, on a 35 percent increase in sales.
Terms & Conditions
RSS Headlines
Fool UK