Sprint Resists DISH Network Bid and 2 Other Hot Stocks To Watch
Sprint Nextel Corporation (NYSE:S): Current price $7.00
The Street reports that DISH Network is abandoning its $25.5 billion offer to purchase Sprint subsequent to SoftBank hiking its bid for the carrier earlier this month, and gaining the unanimous support of the company’s board. Following the market close on Tuesday, DISH Network said it ceased due diligence efforts on the prospective takeover, because of “extreme deal protections” making it impractical to tender a revised offer prior to the deadline, which was reached Tuesday. Difficulties that DISH faced in the deal were mounting roadblocks like a rising termination fee and Sprint’s adoption of a shareholder rights plan, after a special committee convened by its board backed SoftBank’s merger efforts.
BlackBerry (NASDAQ:BBRY): Current price $14.18
Shares are falling in morning trading Wednesday, after being downgraded by analyst Pierre Ferragu at Bernstein to Underperform from Market Perform in a note to investors earlier in the day. Ferragu wrote that BlackBerry’s results in the second will likely be below expectations, and consumer demand for the company’s products is weak, as indicated by reports after surveying distributors and carriers. What’s more, the analyst said that a number of large businesses may not adopt BlackBerry’s new smartphones, since only 60 percent of Fortune 500 companies are testing the new devices. Ferragu lowered his estimates of the firm’s device shipments for the second half of this year and beyond, slashing his price target on the shares from $15 to $10 as he did so.
Weyerhaeuser Company (NYSE:WY): Current price $27.31
On Wednesday, Weyerhaeuser announced the pricing of the public offering of 29 million common shares at $27.75 per share. The company raised around $805 million of gross proceeds from the offering. Additionally, the underwriters will have an option to buy as much as 4.35 million shares. The net proceeds will be employed as partial consideration to finance the previously reported purchase of all of the equity interest in Longview Timber. The offering should close on June 24th, subject to the usual closing conditions.