U.S. stocks and bonds fell as the British pound slumped to its lowest levels in more than three decades on speculation the Brexit vote, revealed earlier this year, could limit the U.K.’s access to the European Union.
The S&P 500 lost 0.33% while the Dow Jones Industrial Average fell 0.3%. The Nasdaq Composite declined 0.21%.
Thanks to the revival of “Merger Monday,” Cabelas Inc (NYSE:CAB), Janus Capital Group Inc (NYSE:JNS) and Twitter Inc (NYSE:TWTR) were three of the day’s top performers.
Cabelas Inc (CAB)
Shares of Cabelas Inc, the retailer of hunting and fishing products, as well as other outdoor related fare, surged 15% on more than 20 times the average daily volume after agreeing to be acquired by rival Bass Pro, LLC.
Bass Pro Shops reportedly beat out private equity firm Sycamore Partners for CAB with a bid of $5.5 billion. That values CAB at $65.50 per share and is nearly double where CAB shares traded in late October 2015.
Hedge fund Elliott Management took an activist stake in Cabelas last, looking to push for a sale or a management shakeup.
Janus Capital Group Inc (JNS)
Shares of mutual fund issuer Janus Capital Group jumped 12% on more than 10 times the usual turnover on reports the company will be acquired by London-based Henderson Global Investors. Henderson will reportedly pay $6 billion for JNS.
The marriage of JNS and Henderson is seen as the latest effort by active managers to protect already eroding market share from lower cost, passively managed index funds, including exchange traded funds (ETFs). Janus has recently increased its presence in the ETF industry, but the company has not had net inflows since 2009, according to Barron’s.
Henderson investors will own 57% of the combined company, while JNS investors will own the remainder.
Twitter Inc (TWTR)
Social media firm Twitter Inc gained 4.1% on news that Google parent Alphabet Inc (NASDAQ:GOOG, GOOGL) hired Lazard Ltd (NYSE:LAZ) to help it potentially make a bid for TWTR.
TWTR previously hired Goldman Sachs Group Inc. and Allen & Co. to generate interest among potential suitors.
Separate reports say AT&T Inc. (NYSE:T) and Walt Disney Co (NYSE:DIS) are fading as possible buyers for Twitter.
As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.
