Stocks Opened Higher amid Deal News

U.S. stocks opened higher on Monday as drug and telecoms companies announced mergers. The Dow Jones Industrial Average lately added 89.78 points, or 0.55% to 16,451.24. The S&P gained 6.70 points, or 0.36%, at 1,870.10. The Nasdaq Composite was up 12.39 points, or 0.30%, to 4,087.95.

U.S. drugmaker Pfizer Inc is working on its next move in a potential $100 billion battle for Britain’s AstraZeneca Plc after having two bids rejected, as deal-making grips the healthcare industry.

The board of Swedish specialty pharmaceuticals company Meda AB (MEDA) Monday rejected a sweetened merger bid from U.S. peer Mylan Inc. MYL -3.63% , saying it prefers to remain a stand-alone company, while a lack of support from its largest shareholder would scupper the deal anyway.

Comcast Corp. and Charter Communications Inc. reached a deal for Comcast to divest millions of subscribers, helping it smooth over regulatory concerns involving its $45 billion deal for Time Warner Cable Inc.As part of  the agreement, Comcast (CMCSA) will divest about 1.4 million existing Time Warner Cable (TWC) customers directly to Charter (CHTR) for cash.

German industrial conglomerate Siemens AG offered a swap transaction with French rival Alstom SA to create a European champion in the fields of energy and transportation, in a bid to counter an offer by U.S. rival General Electric Co.

Bank of America said it would suspend its $4 billion stock buyback program and the planned increase in its quarterly dividend after it miscalculated the treatment of certain structured notes.