Intel, Nike, Pep Boys, Discover, Equinix Reach 52-Week Highs as DJIA Holds 12,650

Intel Corp. (NASDAQ:INTC): RealNetworks (NASDAQ:RNWK) announced that it has signed an agreement to sell a significant number of its patents and its next generation video codec software to Intel (NASDAQ:INTC) for a purchase price of $120M. Under terms of the sale, RealNetworks retains certain rights to continue to use the patents in current and future products. In addition to the sale of the patents and next-generation video codec software, RealNetworks and Intel signed a memorandum of understanding to collaborate on future support and development of the next-generation video codec software and related products. The shares closed at $26.75, down $0.15 or 0.56% on the day. They have traded in a 52-week range of $19.16 to $26.98.

Nike (NYSE:NKE): NIKE announced Bert Hoyt will become the Vice President and GM of Western Europe, one of Nike’s six divisional geographies. Roland Wolfram will replace Hoyt as the new VP & GM of Global Football. Tom Peddie will replace Wolfram as the VP of Global Sales. Ann Hebert, 41, will replace Peddie as the VP of North America Sales. The shares closed at $103.39, up $1.28 or 1.25% on the day. They have traded in a 52-week range of $69.43 to $103.29.

Pep Boys-Manny Moe (NYSE:PBY): The Pep Boys announced that it has entered into a definitive merger agreement under which it will be acquired by The Gores Group, one of the nation’s leading investment firms, led by founder and CEO, Alec Gores. Total enterprise value of the transaction is approximately $1B.Under the terms of the merger agreement, The Gores Group will acquire all the outstanding common shares of Pep Boys for $15.00 per share in cash. This represents a premium of 24% percent over Pep Boys’ closing price of $12.08 on January 27, 2012 and a premium of 36% percent over Pep Boys’ volume weighted average closing price over the last 30 trading days. The transaction is currently expected to close in the second fiscal quarter of 2012. Following completion of the transaction, Pep Boys will become a privately held company and its stock will no longer trade on the New York Stock Exchange. Pep Boys noted that, in light of the proposed transaction, it will not host a conference call to discuss financial results for the 2011 fiscal year, but intends to file its year-end results with the SEC. The shares closed at $14.93, up $2.85 or 23.59% on the day. They have traded in a 52-week range of $8.18 to $14.70.

Discover Financial (NYSE:DFS): Discover Financial Services (NYSE:DFS) said a federal investigation into the credit card issuer’s marketing practices may adversely affect net income, saying in an annual filinng that “the exposure to loss for this matter could materially exceed” the $100M it estimates it may cost to resolve all legal and regulatory issues, reports Bloomberg. The shares closed at $27.96, up $0.51 or 1.86% on the day. They have traded in a 52-week range of $20.23 to $27.92.

Equinix (NASDAQ:EQIX): After Equinix indicated that it would be open to becoming a REIT, Wells Fargo believes that Equinix’s recurring FCF growth would be superior to that of data center REIT Digital Realty. The firm thinks that becoming a REIT would allow Equinix to create shareholder value, and it raised its valuation range on the stock to $146-$156 from $123-$131. The firm maintains an Outperform rating on the stock. The shares closed at $119.80, up $1.92 or 1.63% on the day. They have traded in a 52-week range of $80.85 to $118.00.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com