Wednesday, April 13, 2011

Stocks In Focus: TYC, RVBD, GRM

Shares of Tyco International Ltd. (NYSE: TYC) dropped more than 2% in Wednesday's pre-market trading after Schneider Electric said that it isn't in discussions with Tyco regarding a "potential strategic transaction between the two companies." Schneider Electric said that it would make no further comment on the matter.

Riverbed Technology (NASDAQ: RVBD) said late Tuesday that it expects first quarter revenue in the range of $163 million to $164 million, which is above the Wall Street expectation of $161 million. The company said that it epects first quarter non-GAAP EPS between $0.19 and $0.20, which is also above the consensus of $0.18. Jerry M. Kennelly, Riverbed President and CEO, said, "With a strong start to 2011, Riverbed exceeded revenue and earnings expectations in the first quarter. We executed well, achieving 45% year-over-year revenue growth, and non-GAAP operating profits doubled compared to the first quarter last year. Sales increased on an annual basis across all major geographies as spending on WAN optimization remains a priority." Shares of Riverbed Technology surged as much as 14% in pre-market trading.

Shares of Graham Packaging Co. (NYSE: GRM) rallied more than 21% in Wednesday's pre-market trading after the company said that it has agreed to be acquired by Silgan Holdings Inc. (NASDAQ: SLGN)  in a cash and stock deal. Pursuant to the merger agreement, Graham shareholders will receive 0.402 shares of Silgan common stock and $4.75 in cash for each share of Graham common stock, representing a total enterprise value, including net debt, of approximately $4.1 billion. Based on Silgan's closing stock price on April 12, 2011, the transaction implies a value of $19.56 per Graham share, representing a premium over the closing price of Graham's stock on April 12, 2011 of approximately 17 percent.

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