Stocks Rise to Records Amid Deals

U.S. stocks ended modestly higher on Monday, with the S&P 500 and Dow Jones Industrial Average closing at record levels, as markets got a boost from another round of merger mania with Tyson and Merck announcing multibillion-dollar deals. The Dow Jones Industrial Average rose 18.82 points, or 0.11%, to 16,943.10. The S&P 500 was up 1.83 points, or 0.09%, to 1,951.27.  The Nasdaq Composite added 14.84 points, or 0.34%, at 4,336.24.

U.S. meat giant Tyson Foods announced today that it has offered to acquire all outstanding shares
of Hillshire Brands Company for a price of $63 per share in cash. The all-cash transaction is valued at about $8.5 billion, including Hillshire Brands’ outstanding net debt, Tyson Foods said in a statement.

Merck & Co. Inc. (MRK) paid $24.50 a share in cash for Idenix Pharmaceuticals Inc. (IDIX), a stunning 239% premium from Friday’s close of $7.23. That’s the biggest-ever premium for a health-
care deal that topped $100 million in value, according to Bloomberg News.

Meanwhile, Analog Devices (ADI) on Monday agreed to buy Hittite Microwave Corp. (HITT) for $78 a share, which is 29% higher than Friday’s closing price of $60.56. Shares of Analog Devices were up
5.2%.