Big M&A Day for Berkshire — Thursday’s IP Market Recap

by Marc Bastow | May 30, 2013 4:41 pm

InvestorPlace Market Recap[1]Despite a beating in Japan’s Nikkei, which plunged 5.2% before U.S. markets opened, a higher-than-expected initial jobless claims number and a report indicating continued American economic sluggishness, investors still put Wednesday’s selloff in the rear-view and piled back into stocks Thursday.

The Nasdaq powered ahead 0.69% to close at 3491.30, while the S&P 500 closed up 0.37% to 1654.43, and the Dow Jones Industrial Average ticked up 0.14% at 15324.60.

There was plenty of news on the M&A front Thursday. Warren Buffett’s Berkshire Hathaway (BRK.B[2]) — through its MidAmerican Energy unit — will acquire NV Energy (NVE[3]) for $5.6 billion in cash ($23.75 per share), or a roughly 22% premium on NVE shares.

And Dish Network (DISH[4]) raised its offer for Clearwire (CLWR[5]) after-hours Wednesday, topping a bid from Sprint (S[6]) for the 4G broadband supplier. Dish also is competing with Japan’s Softbank (SFTBF[7]) to acquire Sprint. CLWR shares rose just shy of 30% on the news, while Sprint and Dish each inched forward.

Data storage equipment maker EMC Corp. (EMC[8]) improved more than 5% after announcing an increase to its share repurchase program and the initiation of a quarterly dividend[9] — set at 10 cents quarterly, EMC would yield 1.6% annually as of Thursday’s closing price.

Heading the other way was discount retailer Big Lots (BIG[10]), which dropped more than 9% after reporting declines in profits and same-store sales in the first quarter. The company also provided weaker-than-expected guidance.

Finally, embattled aluminum producer Alcoa (AA[11]) slipped a little more than 1% after Moody’s cut the credit rating of the Dow component to junk status.

Three Up

Three Down

Marc Bastow is an Assistant Editor at As of this writing, he did not hold a position in any of the aforementioned securities.

  1. [Image]:
  2. BRK.B:
  3. NVE:
  4. DISH:
  5. CLWR:
  6. S:
  7. SFTBF:
  8. EMC:
  9. initiation of a quarterly dividend:
  10. BIG:
  11. AA:
  12. EXPR:
  13. WFR:
  14. Read more here.:
  15. ABX:
  16. JRCC:
  17. VNR:
  18. YGE:

Source URL:
Short URL: