Stocks Struggled amid Deal News

U.S. stocks struggled in the early trading on Monday despite corporate deals and data showing a faster-than-forecast gain in American production. The Dow Jones Industrial Average lately fell 13.93 points, or 0.08%, to 16,761.81. The S&P 500 was up 2.24 points, or 0.12%, to 1,938.40. The Nasdaq Composite gained 8.19 points, or 0.19%, to 4,318.84.

U.S. manufacturing output rose in May after in shrinking in April, led by greater production of autos, computers and furniture. The Federal Reserve says factory output rose 0.6 percent in May after dipping 0.1 percent the previous month.

Level 3 Communications Inc. agreed to buy business ethernet provider TW Telecom for about $5.7
billion in cash and stock. The deal values tw telecom at $40.86 a share, a 12% premium to Friday’s close. Shareholders will receive $10 cash and 0.7 share of Level 3 for each share of TW Telecom.

SanDisk Corp. agreed to acquire Fusion-io Inc. in an all-cash deal that values the data-storage company at about $1.21 billion. Net of cash assumed, the deal is valued at $1.1 billion, said SanDisk.

Williams Cos. agreed to pay nearly $6 billion to expand its ownership of Access Midstream Partners
LP, a move aimed at increasing the natural-gas pipeline company’s presence in areas with growing
energy output from shale formations.

German engineering company Siemens AG and Japanese peer Mitsubishi Heavy Industries Ltd. were close
on Sunday to finalizing an offer for much of Alstom SA ‘s energy business, potentially entering a bidding war with General Electric Co. for one of France’s industrial jewels, said people familiar with the companies’ plans.

Medical-technology company Medtronic Inc. (MDT) said Sunday it plans to buy Ireland-based Covidien
PLC (COV) in an almost-$43-billion deal, confirming reports out earlier over the weekend.

A Boston investment firm is nearing a deal to buy a stake in hedge-fund giant D.E. Shaw Group for more than $500 million from the estate of Lehman Brothers Holdings Inc., according to a person familiar with the matter.