Diamonds and Dogs
GE (GE) making new recent highs. General Electric is up 3% to a four month high after agreeing to merge its transportation business with U.S. rail equipment manufacturer Wabtec Corp for $11.2 billion. GE will own just over half of the combined business. The deal is the biggest to be inked thus far by GE Chief Executive John Flannery. GE will receive a $2.9 billion up-front payment in cash and a 9.9-percent stake in the combined company.
Fifth Third Bank (FITB) is in last place today. Fifth Third Bank stock is down 7% as the nation's 13th-biggest bank, is buying MB Financial for $4.7 billion. The price they are paying is a higher amount relative to book value than most bank deals. Fifth Third officials said on a conference call that the bank expects to earn back the premium it paid in about six years. But six years is a long time for most shareholders.
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