Russell 2000 and Dow flat
The Russell 2000 index and the Dow are barely below their start levels, while investors focus on news of possible mergers and acquisitions. At 11:41 a.m. ET the Russell 2000 was down 1.11 points, or 0.13%, to 847.08. The Dow Jones Industrial Average had lost 0.65 points, or 0.00%, to 13,638.83.
Shares of Encysive Pharmaceuticals Inc. (Nasdaq: ENCY) are plummeting following news that the U.S. Food and Drug Administration has declined to approve its drug for the treatment of pulmonary arterial hypertension. Encysive received a letter from the FDA stating that the development program for the drug Thelin does not show the effectiveness needed for approval, the Houston-based company said after the close on Friday, June 15. Shares are down $1.82, or 44%, to $2.28.
St. Charles, Mo.-based LMI Aerospace, Inc. (Nasdaq: LMIA), a provider of structural components for the aerospace, defense and technology industries, has decided to acquire design and engineering services firm D3 Technologies, Inc. for $65 million in cash. "D3 is an established business with an experienced, proven team of engineers and managers that will enable LMI to forge an integrated engineering and manufacturing platform to better serve its customers," Ronald Saks, LMI Aerospace CEO and President, said before the start of trading. The transaction is expected to close in the third quarter. Shares are up $1.53, or 7%, to $22.09.
U.S. Energy Systems, Inc.’s (Nasdaq: USEY) financial report contains a statement highlighting the New York-based company’s continuing operating losses. Financial statements for the year ended December 31, 2006 contain a warning from public accounting firm Weiser, LLP that U.S. Energy Systems has a deficiency of working capital and is losing money, which “raises substantial doubt about the [its] ability to continue,” the New York-based clean energy company said before the opening bell. The stock has lost $1.08, or 26%, to $3.08.
With little news on the economic front, investors are focusing on the latest corporate deal-making.
Australian mining company, BHP Billiton Ltd. (NYSE: BHP) is renewing its $40 billion bid for Pittsburgh, Pa.-based aluminum producer Alcoa Inc. (NYSE: AA), according to Britain’s The Times newspaper.
Also, General Electric Co. (NYSE: GE) and the publisher of the Financial Times may make a joint bid for Dow Jones & Company, Inc. (NYSE: DJ), pushing aside News Corp.’s (NYSE: NWS) offer, according to The Wall Street Journal.
