Cypress Semiconductor & Spansion
Cypress Semiconductor is buying Spansion in a deal that values the company at about $1.6 billion. The movie will create a flash memory marker worth more than $2 billion in annual revenue. Shares of Cypress surged initially after hours when the deal was announced. Spansion also rose in after-hours trading.
Apple shares took a sudden dive this morning. The tech giant’s shares briefly suffered their largest price drop in at least three months on an unusual spike in volume, before recovering slightly. There are a few possible reasons to explain the selling, for one Morgan Stanley is trimming its position in the company by one percent because it has been trading around record highs, others say the move lower was simply some profit taking. Shares closed down almost $4 to $115.07.
Amazon also saw its shares fall after new that Moody’s changed the company’s outlook to “negative” from “stable,” this after the retailer said it would issue a substantial level of new senior unsecured notes. The credit rating service did, however, affirm its medium investment grade rating as Amazon’s excellent liquidity provides an ample cushion. Shares were off almost four percent to $326.
Berkshire Hathaway is buying another chemical firm and this time it’s Weatherford. Buffett’s specialty chemical subsidiary Lubrizol will spend at least $750 chemicals and drilling fluids. Shares of Weatherford tumbled more than three percent $12.67.
Medical device maker Medtronic launched the biggest corporate bond sale of the year, offering to sell $17 billion to finance the acquisition of Ireland’s Covidien. According to reports, there was big demand for the company’s bonds, with investors placing more than $45 billion in orders. Shares of Medtronic were unchanged at $73.87.