Elan Agrees to Perrigo Takeover and 2 Other Hot Stocks to Watch
Elan Corp. (NYSE:ELN): Current price $15.55
Perrigo Co. will acquire biotech company Elan Corp. at a price of $8.6 billion, after the latter had put itself on the block after turning down a previous suitor. Perrigo makes private-label cold remedies, infant formula, and allergy treatments for retailers like Wal-Mart Stores Inc. and Walgreen Co. The transaction to buy Elan will be accomplished with cash and stock at $16.50 a share, which represents a 10.5 percent premium over Elan’s close on Friday. The latter’s shares are up more than 4 percent Monday morning.
Bank of America Corp. (NYSE:BAC): Current price $14.50
Data compiled by Bloomberg indicate that United States financial firms show the most rapid earnings growth in the Standard & Poor’s 500 Index, and are ready to retake their rank as the market’s number-one industry for the first time since the financial crisis. Banks, brokers and insurance companies comprise 16.8 percent of the S&P 500, which is almost twice the level from 2009, and are moving in on tech firms, which stand at 17.6 percent. Bank of America Corp. and Morgan Stanley are helping lead gains in the index in July, after their profits beat analyst estimates.
Micron Technology, Inc. (NASDAQ:MU): Current price $12.46
Micron said Monday that it expects to close on its purchase of 100 percent of Elpida’s equity on July 31, Tokyo time. The closing of the acquisition will be through a Sponsor Agreement reached on July 2, linked with Elpida’s corporate reorganization proceedings conducted under the jurisdiction of the Tokyo District Court. The finalization of the transaction is subject to satisfaction or waiver of several conditions, including final approval by the Tokyo District Court.