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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: richardred who wrote (2704)1/22/2011 1:39:02 AM
From: richardred
   of 6101
 
The Bearish Side: Takeover Rumors Being Targeted by Short-Sellers

By Eben Esterhuizen and Alicia Sellitti, Kapitall | More Articles
January 20, 2011 | Comments (0)

The promise of outsized returns sends many investors in search of takeover targets to add to their portfolios, hoping to see gains from the companies looking ripe for the picking. It's no secret that stockholders' shares are typically purchased at a premium by the acquiring company -- and that's a pretty compelling selling point.

But the strategy only works if you correctly anticipate the takeover -- and the numbers suggest that it's a lot easier said than done.

According to a report compiled by Bloomberg, only 14.5% of takeover gossip circulating online and in-print over the past five years actually panned out. And even assuming the germ of the rumor to has some basis in reality -- which most don't -- it's still nearly impossible to turn a profit from it.

At least according to Todd Salamone, equity analyst at Schaeffer's Investment Research Information. Any intel spreads through the market like wildfire, via email and instant message -- so by the time it reaches you, the general public, it's already old news, and the shares have already staged a rally. And other indicators of bullish sentiment, like options sentiment, tend to be pretty hit-or-miss.

An alternative way to play the M&A trend? "Bet it's wrong." Short-sellers sell high in order to buy low, by borrowing shares from other investors, selling them on the open market, and closing the short by buying back the same number of shares initially borrowed. If the short-seller can buy back the stock at a lower price, he turns a profit off the difference.

John Orrico of Water Island Capital LLC tells Bloomberg that his firm "see[s] it as an opportunity to sell if we think the [takeover] rumor is false or ridiculous, which in most cases they are." This strategy has repeatedly seen strong results: betting against takeover rumors has historically generated more than twice the average return of U.S. stocks since 1900 before dividends, adjusting for inflation.

So which rumors are looking doubtful? To find out, we started with a universe of about 250 rumored takeover targets (access the entire universe here). We then collected data on short sales, and identified the companies that have recently seen a sharp increase in shares shorted.

Company


Source of Takeover Rumor


Short Float


Shares Shorted Between 9/30-12/31

Travelzoo (Nasdaq: TZOO)


Business Insider


29.48% of the company's shares have been shorted, which equals 5.38 days of average volume


Increased from 1.01M to 1.63M (+61.39% change)

GameStop (NYSE: GME)


Barron's, TheStreet.com


26.38% of the company's shares have been shorted, which equals 10.44 days of average volume


Increased from 28.51M to 38.4M (+34.69% change)

Savient Pharmaceuticals (Nasdaq: SVNT)


Street Insider


19.32% of the company's shares have been shorted, which equals 3.91 days of average volume


Increased from 10.33M to 13.42M (+29.91% change)

Terremark Worldwide (Nasdaq: TMRK)


Barron's


16.12% of the company's shares have been shorted, which equals 14.69 days of average volume


Increased from 6.38M to 8.05M (+26.18% change)

BancorpSouth (NYSE: BXS)


Dick Bove, Banking Analyst


12.92% of the company's shares have been shorted, which equals 10.16 days of average volume


Increased from 7.58M to 9.45M (+24.67% change)

Atheros Communications (Nasdaq: ATHR)


Barron's


13.14% of the company's shares have been shorted, which equals 2.72 days of average volume


Increased from 7.78M to 9.36M (+20.31% change)
fool.com

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To: richardred who wrote (2509)1/22/2011 2:24:05 AM
From: richardred
   of 6101
 
RE-SFE-Lilly PR snip>Avid stockholders will also be eligible for up to $500 million in additional payments contingent upon potential future regulatory and commercial milestones for florbetapir. Upon completion of the acquisition, Avid will continue to operate from its facility in Philadelphia, Pennsylvania. Avid will provide uninterrupted support for ongoing academic clinical trials, including the Alzheimer's Disease Neuroimaging Initiative (ADNI), as well as ongoing clinical trials for other pharmaceutical companies.
___________________________________________________________________________________________________________________________________________

Statement from Lilly and Avid on FDA Advisory Committee Recommendation for Amyvid™ (Florbetapir) NDA

INDIANAPOLIS and PHILADELPHIA, Jan. 20, 2011 /PRNewswire/ -- The U.S. Food and Drug Administration's (FDA) Peripheral and Central Nervous System Drugs Advisory Committee decided today that it could not recommend approval of Amyvid™ (florbetapir) at this time based on the currently available data (13-3); but, voted unanimously (16-0) to recommend approval of Amyvid conditional on a reader training program that demonstrates reader accuracy and consistency through a re-read of previously acquired scans. The Committee supported that efficacy was established and there were no significant safety concerns raised.

Amyvid is a molecular imaging tool under investigation for the detection of beta-amyloid plaque in the brain. The Committee stated that a negative scan would be clinically useful in indicating that Alzheimer's pathology is unlikely to be the cause of a patient's cognitive decline.

Lilly acquired Avid Radiopharmaceuticals, Inc. in December 2010. Amyvid is Avid's lead candidate and was the first beta-amyloid imaging compound to enter multi-center, investigational new drug (IND) clinical studies in the United States. Amyvid was recently assigned priority review designation by the FDA.

"We appreciate the careful and thoughtful review of our data today by the Committee," said Daniel M. Skovronsky, M.D., Ph.D., CEO, Avid Radiopharmaceuticals, Inc. "We are encouraged that they recommended a clear path toward approval."

The FDA will consider the panel's recommendation in its review of Amyvid. The FDA takes the advice of its Advisory Committees into consideration when reviewing investigational drugs, but is not bound by their recommendations.

About Amyvid

Amyvid is an imaging tool indicated for Positron Emission Tomography (PET) imaging of beta-amyloid plaque in the brain. It's being investigated for the potential use in ruling out Alzheimer's disease. In addition to the pivotal Phase III "Image-to-Autopsy" study, other clinical studies are also being conducted in the E.U., North and South America, Australia and Asia.

About Eli Lilly and Company

Lilly, a leading innovation-driven corporation, is developing a growing portfolio of pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides answers — through medicines and information — for some of the world's most urgent medical needs. Additional information about Lilly is available at www.lilly.com.

P-LLY

This press release contains forward-looking statements about Amyvid (Florbetapir) for use as a molecular imaging tool for the detection of beta-amyloid plaque in the brain. It reflects Lilly's current beliefs; however, as with any such undertaking, there are substantial risks and uncertainties in the process of development and commercialization. There is no guarantee that florbetapir will be approved by the FDA on the anticipated timeline or at all, or that that it, will be commercially successful. For further discussion of these and other risks and uncertainties, please see Lilly's latest Forms 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. The company undertakes no duty to update forward-looking statements.

SOURCE Eli Lilly and Company

News Provided by Acquire Media
investor.lilly.com

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To: richardred who wrote (2608)1/22/2011 3:18:24 PM
From: richardred
   of 6101
 
Vision needed ULBI/GE Future business ?

If you have vision. Picture this, UBLI someday getting a GE contract. ULBI in Newark, NY and GE in Schenectady, NY. Besides Mr. Cuomo needs NY Businesses to want to stay in NY. It's the future site of GE's advanced battery manufacturing program. ULBI's China Business IMO is starting to look promising.

AP SNIP>Displaying stepped-up outreach, Obama on Friday named GE's chief executive, Jeffrey Immelt, as the head of a Council on Jobs and Competitiveness. The panel replaces Obama's Economic Recovery Advisory Board, which had been chaired by former Federal Reserve Chairman Paul Volcker. Obama announced late Thursday that Volcker, as expected, was ending his tenure on the panel.

Immelt has been an advocate of alternative forms of energy, and the GE facility Obama visited, the company's largest energy plant, is the future site of GE's advanced battery manufacturing program. New battery technology has become something of an Obama pet project as a symbol of innovation, clean energy and job creation

The trip followed on the heels of a state visit by Chinese President Hu Jintao that featured announcement of new trade deals worth about $45 billion and vows to ease restrictions on U.S. investments in China.

"We want to open up their markets so we have two-way trade, not just one-way trade," the president said.
finance.yahoo.com.

____________________________________________________________________________________

Popielec, Michael Mr. Michael D.

Snip>Mr. Popielec held positions of increasing responsibility at General Electric Company, most recently as a GE corporate officer and president and chief executive officer of GE Power Controls, the European arm of GE Industrial Systems.

Popielec has been appointed as President, Chief Executive Officer, Director of Ultralife Corp since December 30, 2010. He has 25 years experience in growing domestic and international industrial businesses. Prior to joining Ultralife, he was group president, Applied Technologies at Carlisle Companies, Inc., a $2.5 billion diversified global manufacturer. Prior to that, he was chief operating officer, Americas, for Danka Business Systems, PLC. From 1985 to 2002, Mr. Popielec held positions of increasing responsibility at General Electric Company, most recently as a GE corporate officer and president and chief executive officer of GE Power Controls, the European arm of GE Industrial Systems. Mr. Popielec has a B.S. in Mechanical Engineering from Michigan State University.
_________________________________________________________________

Sept.2010 10K snip
Overview
Consolidated revenues for the three-month period ended September 26, 2010 increased by $10,918, or 25.8%, from the three-month period ended September 27, 2009. This increase was primarily caused by increased revenues in our Communications Systems segment as a result of deliveries on the SATCOM-on-the-Move order received in May 2010. Gross margin increased to 27.9% as a percentage of total revenues for the three-month period ended September 26, 2010, as opposed to 24.5% for the three-month period ended September 27, 2009. Gross margin increased in our Battery & Energy Products and Communications Systems operating segments, which was partially offset by the decrease in the gross margin in our Energy Services operating segment. Gross margin as a percentage of total revenues for our Battery & Energy Products and Communications Systems segments during the three-months ended September 26, 2010 increased to 21.7% and 35.3%, respectively. The primary reason for the gross margin improvement was a favorable mix of high-margin Communications Systems revenue, including strong SATCOM-on-the-Move and AMTI amplifier revenue, and Battery & Energy Products manufacturing efficiencies particularly in our China operations.

In our Battery & Energy Products segment, the cost of products sold decreased $3,402, from $19,553 during the three-month period ended September 27, 2009 to $16,151 during the three-month period ended September 26, 2010. Battery & Energy Products gross margin for the second quarter of 2010 was $4,481, or 21.7% of revenues, a decrease of $775 from gross margin of $5,256, or 21.2% of revenues, for the third quarter of 2009. Battery & Energy Products gross margin as a percentage of revenues increased for the three-month period ended September 26, 2010, primarily as a result of manufacturing efficiencies, higher selling prices realized for some of our products and favorable performance from our China operations, in comparison to the three-month period ended September 27, 2009.

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To: richardred who wrote (2637)1/24/2011 1:49:15 AM
From: richardred
   of 6101
 
Novartis announces agreement to acquire Genoptix, Inc. in all cash offer
* Reuters is not responsible for the content in this press release.

Mon Jan 24, 2011 1:01am EST

Novartis International AG / Novartis announces agreement to acquire Genoptix, Inc. in all cash offer Processed and transmitted by Thomson Reuters. The issuer is solely responsible for the content of this announcement.

*
Novartis to acquire Genoptix through an all cash tender offer at USD 25.00 per share

*
Genoptix laboratory service offerings provide strategic fit with the current portfolio of companion diagnostic programs within Novartis Molecular Diagnostics unit

*
Acquisition complements the Novartis internal capabilities aimed at improving health outcomes by advancing individualized treatment programs

Basel, January 24, 2011 - Novartis announced today that it has entered into a definitive agreement for the acquisition of Genoptix, Inc. (NASDAQ: GXDX), a specialized laboratory providing personalized diagnostic services to community-based hematologists and oncologists. The acquisition will enhance Novartis's tools and services that aim to improve health outcomes for patients by advancing the ability to define and monitor individualized treatment programs.

Under the terms of the agreement, Novartis will commence a tender offer for all outstanding shares of common stock of Genoptix at USD 25.00 per share in cash. This represents a total equity value of USD 470 million and an enterprise value of USD 330 million. The Novartis offer represents a premium of 39% over Genoptix's unaffected share price of USD 17.98 on December 13, 2010. It also implies a 27% premium over the closing price of USD 19.76 on January 21, 2011.

"The acquisition of the Genoptix medical laboratory will serve as a strong foundation for our individualized treatment programs," said Joseph Jimenez, CEO of Novartis. "Genoptix is an innovative company with a talented team of people who share our commitment to transforming the way medicine is practiced. By integrating Genoptix within Novartis, we can greatly enhance the value we add to patients, clinicians, payors and society."

Founded in 1999 and based in Carlsbad, California, Genoptix is a publicly traded, profitable laboratory that specializes in diagnosing cancers in bone marrow, blood and lymph nodes. In 2009, Genoptix had sales of USD 184 million, and for the first nine months of 2010, its reported revenue totaled USD 148 million.

Genoptix employs approximately 500 people and will become part of Novartis Molecular Diagnostics (MDx), a unit within the Novartis Pharmaceuticals Division. The acquisition will support and expedite the development of companion diagnostic programs, especially in oncology.

Novartis plans to maintain the existing operations and continue delivering Genoptix's portfolio of personalized diagnostics services to community-based hematologists/oncologists across the US.

The Genoptix Board of Directors has unanimously approved the transaction and agreed to recommend that Genoptix stockholders tender their shares. The transaction is conditional upon the tender of at least a majority of the shares of Genoptix in the tender offer, receipt of regulatory approvals and other customary closing conditions. The transaction is expected to close within the first half of 2011.

Disclaimer
The foregoing release contains forward-looking statements that can be identified by terminology such as "will", "will expedite", "plans", "expected", "strategic", "advancing", "may", "should" or similar expressions, or by express or implied discussions regarding the potential impact on Novartis of the proposed transaction with Genoptix, including express or implied discussions regarding potential future sales or earnings of the Novartis Group or Genoptix and any potential synergies, strategic benefits or opportunities as a result of the proposed transaction. You should not place undue reliance on these statements. Such forward-looking statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no guarantee that Novartis or Genoptix will achieve any particular future financial results or future growth rates or that Novartis or Genoptix will be able to realize any potential synergies, strategic benefits or opportunities as a result of the proposed transaction. In particular, management's expectations could be affected by, among other things, unexpected regulatory actions or delays or government regulation generally; uncertainty that the two businesses will be integrated successfully and that key personnel will be retained; uncertainties that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; competition in general; government, industry, and general public pricing and other political pressures; the impact that the foregoing factors could have on the values attributed to the Group's assets and liabilities as recorded in the Group's consolidated balance sheet; and other risks and factors referred to in Novartis AG's current Form 20-F on file with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. Novartis is providing the information in this media release as of this date and does not undertake any obligation to update any forward-looking statements contained in this media release as a result of new information, future events or otherwise.

Important Information
The tender offer described herein has not yet commenced, and this material is neither an offer to purchase nor a solicitation of an offer to sell securities. At the time the tender offer is commenced, Novartis will file a tender offer statement with the United States Securities and Exchange Commission (the "SEC"). Genoptix's stockholders are strongly advised to read the tender offer statement (including an offer to purchase, letter of transmittal and related tender offer documents) and the related solicitation/recommendation statement on Schedule 14D-9 that will be filed by Genoptix with the SEC, because they will contain important information that Genoptix's stockholders should consider before tendering their shares. These documents will be available free of charge at the SEC's web site (http://www.sec.gov). In addition, a copy of the offer to purchase, letter of transmittal and related tender offer documents (once they become available) may be obtained free of charge by directing a request to Georgeson, Inc., at 199 Water Street, 26th Floor, New York, New York 10038 or by calling toll-free (888) 206-5896.

About Novartis
Novartis provides healthcare solutions that address the evolving needs of patients and societies. Focused solely on healthcare, Novartis offers a diversified portfolio to best meet these needs: innovative medicines, cost-saving generic pharmaceuticals, preventive vaccines, diagnostic tools and consumer health products. Novartis is the only company with leading positions in these areas. In 2009, the Group's continuing operations achieved net sales of USD 44.3 billion, while approximately USD 7.5 billion was invested in R&D activities throughout the Group. Headquartered in Basel, Switzerland, Novartis Group companies employ approximately 100,000 full-time-equivalent associates and operate in more than 140 countries around the world. For more information, please visit novartis.com.
reuters.com

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To: richardred who wrote (1751)1/24/2011 9:18:55 AM
From: richardred
   of 6101
 
Merger Monday

Smurfit Stone surges on takeover

Smurfit Acquired for Big Premium

Smurfit Stone has been out of bankruptcy for less than a year, and now it's getting acquired by RockTenn. The cash-and-stock deal values SSCC at $35 a share, a 27 percent premium to its closing price Friday.SSCC

Sara Lee Weighing LBO

Sara Lee is weighing a private-equity offer that values the company at $20 a share. Bidders include Apollo Global Management, Bain Capital and TPG Capital. SLE, which closed at $18.70 last week, is up 2.5 percent before the bell.

Philips Electronics' fourth-quarter earnings came up well shy of consensus on weak television sales. It sees some pickup in the construction sector, but PHG is still down 6 percent before the bell.

Barron's Gives Boost to Nvidia
finance.yahoo.com

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To: richardred who wrote (2564)1/24/2011 9:26:31 AM
From: richardred
   of 6101
 
Danone eyeing Indian acquisition: report

PARIS | Mon Jan 24, 2011 7:54am EST

PARIS (Reuters) - French food group Danone (DANO.PA) is looking for acquisitions in India and baby food maker Dumex India could be a target, French daily Les Echos said Monday.

Danone declined to comment. "We do not comment on rumors," a Danone spokeswoman said.

French daily Les Echos said that Dumex India would be a natural target for Danone, which already owns most Dumex operations in Asia as part of its acquisition of Dutch baby food group Numico in 2007.

"After Unimilk, will Danone pursue its expansion in the BRICs? We think so, and this is a good growth booster for the future," CM-CIC analysts said in a note, referring to Brazil, Russia, India and China.

Earlier this year Danone, the world's largest yoghurt maker, merged with Russian dairy group Unimilk, securing 21 percent of the fast-growing Russian dairy market.

Danone -- whose last transformational deal was the 12.3 billion-euro ($17.18 billion) purchase of Numico -- has said it was looking at expanding through bolt-on deals in dairy, medical nutrition, baby food and emerging countries.

By 0937 GMT, Danone shares were down 0.29 percent at 44.68 euros, underperforming the European sector .SX3P. ($1=.7158 Euro) (Reporting by Noelle Mennnella, Dominique Vidalon; Editing by Louise Heavens)
reuters.com

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To: richardred who wrote (2459)1/24/2011 11:47:09 AM
From: richardred
   of 6101
 
Derma Sciences Launches Advanced Wound Care eLearning Portal for Clinicians

New Content-Rich Website Provides Educational Support and Resources to Meet the Ever-Changing Needs of Patients with Chronic Wounds

Press Release Source: Derma Sciences, Inc. On Tuesday January 4, 2011, 8:30 am EST

PRINCETON, N.J.--(BUSINESS WIRE)-- Derma Sciences, Inc. (Nasdaq:DSCI - News), a medical device and pharmaceutical company focused on advanced wound care, announces the launch of a new eLearning Portal to provide clinicians with valuable educational programs to ensure they are kept abreast of the latest information and product solutions in the Company’s advanced wound care line. Available at www.dermasciences.com/elearning-portal/, the eLearning Portal is a highly visible example of the Derma Sciences commitment to advanced wound care, and contains both new and aggregated content.

The eLearning Portal includes archived webinars to support educational needs on such topics as wound debridement, the use of MEDIHONEY® on stalled wounds and those with atypical etiologies, and the benefits of super absorbent polymer technology in moist wound dressings. New webinars will be added approximately every six weeks. The Portal also aggregates the considerable number of abstracts, articles and peer-reviewed clinical posters on MEDIHONEY®, as well as broadcast media coverage about the Company’s products and extensive product literature available for download on MEDIHONEY®, XTRASORB®, ALGICELL® Ag and BIOGUARD®. Clinicians also can request product samples directly from the eLearning Portal.

According to Barry Wolfenson, Executive Vice President, Global Marketing and Business Development at Derma Sciences, “With the launch of our new eLearning Portal we are able to bring current and actionable information to clinicians who strive daily to deliver the highest quality care to patients with chronic wounds, burns and wounds at risk of infection. We will be adding content regularly, which will help our customers stay abreast of the many ways in which our innovative products are helping to advance the practice of wound care.”

About Derma Sciences, Inc.

Derma Sciences is a medical technology company focused on three segments of the wound care marketplace, including traditional dressings, advanced wound care dressings and pharmaceutical wound care products. Its MEDIHONEY® product is the leading brand of honey-based dressings for the management of wounds and burns. The product has been shown to be effective in a variety of indications, and was the focus of a positive large-scale, randomized controlled trial involving 108 patients with leg ulcers. Other novel products introduced into the $14 billion global wound care market include XTRASORB®, an advanced line of moist wound dressings, and BIOGUARD® for infection prevention. Derma Sciences expects to announce top-line efficacy results of its Phase 2 clinical study with DSC127, a novel pharmaceutical for accelerated wound healing and scar reduction, by the end of January 2011.

For more information please visit www.dermasciences.com.
finance.yahoo.com

_______________________________________________________________

Another interesting company I like in this field, but don't own currently. Many moons ago, I had it in a Leading edge portfolio at SI.
CRY-CryoLife Inc.- finance.yahoo.com

Message 17291419

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To: richardred who wrote (2193)1/24/2011 12:12:13 PM
From: richardred
   of 6101
 
Teva buys $3.95 million of Rexahn stock
Teva Pharmaceutical Industries buys $3.95 million in Rexahn Pharmaceuticals stock

On Thursday January 20, 2011, 5:05 pm EST

ROCKVILLE, Md. (AP) -- Rexahn Pharmaceuticals Inc. said Thursday that Teva Pharmaceutical Industries Ltd. bought $3.95 million of the company's stock in a private offering.

The investment gives Teva a 6.29 percent ownership stake in Rexahn, which is developing drugs for treating cancer and disorders of the central nervous system.

Rexahn said the investment will be used to fund research and development of a potential anti-cancer compound, RX-3117.

Teva, based in Israel, bought 2,334,515 shares at about $1.69 apiece, marking 39 percent premium to Rexahn's closing price on Wednesday.

Shares in Rexahn, which is based in Rockville, rose 12 cents, or 10 percent, to close Thursday at $1.34. The stock has traded between 65 cents and $3.68 over the last 52 weeks.
finance.yahoo.com

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To: richardred who wrote (2706)1/24/2011 12:46:46 PM
From: richardred
   of 6101
 
3 Stocks Insiders Are Buying
No. 1. A. Schulman(SHLM_). Barrington's James Mitarotonda has been buying more than 15,000 shares during the past few days. In his last transaction he paid $21.35, which was also the closing price for the stock on Friday. Schulman's Chief Marketing Officer Paul R. Boulier purchased 1,200 shares at $21.08 a few days earlier.
thestreet.com

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To: richardred who wrote (2711)1/25/2011 10:10:42 AM
From: richardred
   of 6101
 
Packaging stocks in vogue after Smurfit-Stone deal



By Ernest Scheyder

NEW YORK | Mon Jan 24, 2011 4:49pm EST

NEW YORK (Reuters) - Paper and packaging stocks registered big rises on Monday after RockTenn Co's (RKT.N) $3.5 billion bid for Smurfit-Stone Container Corp (SSCC.N) highlighted the undervalued sector.

Demand for containerboard used to ship goods and wrap food dropped sharply during the recession, causing investors to flee the sector. For example, the shares of sector leader International Paper Co (IP.N), which closed Monday at $28.82, dropped to lows near $4 per share in early 2009.

Yet as the economy recovered, Wall Street tip-toed back. That move got pushed into overdrive on Sunday when RockTenn agreed to buy its bigger rival, Smurfit-Stone, for $35 per share in cash and stock.

"This is a great business that has been transformed over a fairly long period of time," RockTenn Chief Executive Jim Rubright told Reuters.

Smurfit-Stone's strong earnings during the past six months "convinced us of the value of those assets," he said.

(For a Reuters Insider interview on the deal, click on: link.reuters.com/mem67r)

Smurfit-Stone shares jumped $7.48, or 27.2 percent, to close Monday at $35, while RockTenn shares rose $2.13, or 3.7 percent, to $59.31.

International Paper shares rose 3.2 percent, MeadWestvaco Corp (MWV.N) rose 3.9 percent, Packaging Corp of America (PKG.N) shares were up 1.8 percent, Temple-Inland Inc (TIN.N) rose 5.3 percent and KapStone Paper and Packaging Corp (KS.N) was up 4.6 percent.

GROWTH DETAILS

The deal will create the second-largest packager in North America after International Paper and will allow RockTenn to grow in the lucrative food packaging area.

"The business really is going to perform closely with (U.S. gross domestic product), which means in our view that it's going to grow," RockTenn Chief Executive James Rubright said on a conference call.

The deal price of $35 per Smurfit-Stone share represented a 27 percent premium to the stock's closing price of $27.52 on Friday.

After the deal closes, about 56 percent of the combined companies will be controlled by legacy RockTenn shareholders, with the rest controlled by Smurfit-Stone legacy shareholders.

RockTenn's corporate headquarters will remain in Norcross, Georgia. The company has financing for the deal from Wells Fargo & Co (WFC.N), Rabobank NV RABN.UL and Sun Trust.

(Reporting by Ernest Scheyder; editing by John Wallace, Dave Zimmerman and Andre Grenon)
reuters.com

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