Russell 2000 rules on day of gains
The Russell 2000 gained the most as the major U.S. indices ended the day in positive territory. The Russell 2000 added 7.60 points, or 0.92%, to 837.53. The Dow Jones Industrial Average moved up 14.06 points, or 0.10%, to close at 13,521.34.
Shares of CT Communications, Inc. (Nasdaq: CTCI) were the big winners today on news the Concord, N.C.-based telecommunications company will be purchased by Windstream Corp. (NYSE: WIN). The two companies have entered into a definitive agreement that all outstanding shares of CT Communications will be purchased for a price of $31.50 per share in cash, Windstream said before the start of trading. The acquisition is expected to close in the second half of 2007. Shares appreciated $9.81, or 45%, to close at $31.39, near the company’s 52-week high of $31.44.
Bradley Pharmaceuticals, Inc. (NYSE: BDY) has received a proposal from a group of investors to acquire all of the outstanding shares of Bradley common stock and class B common stock for $21.50 per share in cash, the Fairfield, N.J.-based company said before the opening bell. That’s 16.6% above Friday’s closing price. The group is led by Daniel Glassman, who is the founder and CEO and holds nearly all of Bradley’s class B common stock. In his proposal letter, Glassman wrote that he intends to reinvest proceeds from the buyout back into the company. Bradley’s board has formed a committee to explore its options. Shares moved up $3.91, or 21%, to end at $22.35.
Shares of Top Tankers, Inc. (Nasdaq: TOPT) ended the day in positive territory following news before the start of trading that the Greek seaborne transportation services company has entered into an agreement to re-acquire four tankers that it sold in 2006 in a sale and lease-back transaction, and to terminate the respective operating leases. Investment bank Cantor Fitzgerald responded by raising the stock’s price target to $6 from $5.50 and reiterating its “hold” rating. Shares added $0.13, or 2%, to close at $6.16.
In economic news, the consumer confidence index rose to 108.0 in May from a revised level of 106.3 in April, the Conference Board said after the start of trading. Economists were expecting the index to rise to 105 in May from April’s original reading of 104.
U.S. stocks began the morning on the upside on news of more corporate deal making.
The Royal Bank of Scotland launched a $95.5 billion for Amsterdam-based bank ABN Amro, topping a previous rival offer from England’s Barclays.
Elsewhere, Ford Motor Co. (NYSE: F) denied news reports it is looking to sell its Swedish unit Volvo to Germany’s BMW.
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