Consolidation news takes New York markets higher

| November 20, 2006 | 0 Comments

At the mid-point of the trading session on Monday, the New York equities markets were higher, with the Dow Jones Industrial Average up 0.05 percent to 12,348.83. The Nasdaq Composite was 0.3 percent higher to 2,453.64, while the S&P 500 had gained 0.2 percent to 1,403.71.

Consolidation news was in focus. In the mining sector, Freeport-McMoran said it will purchase Phelps Dodge for $25.9 billion in cash and stock. If the deal goes through it will create the largest publicly traded copper company in the world. While Freeport-McMoran dropped 1.2 percent on the news to $56.71, Phelps Dodge added 28.3 percent to $121.87.

Nasdaq offered for the three-quarters of the London Stock Exchange that it doesn’t already own. While the London Stock Exchange rejected the offer on the basis that it “substantially undervalued“ the exchange, Nasdaq’s shares were still 1.6 percent higher to $37.15. Elsewhere in the sector, the New York Mercantile Exchange was up 2.1 percent to $135.75.

In the steel sector, Nucor added 3.4 percent to $59.04. AK Steel was 3.6 percent higher to $15.17, while Steel Dynamics gained 4.4 percent to $62.71 and US Steel was up 6.5 percent to $75.15. All had seen significant gains on Friday as well. Some of the gains came on the news that Evraz Group of Russia said that it will purchase Oregon Steel Mills for $2.3 billion. Oregon Steel Mills was 7.7 percent higher to $63.51.


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