1:15 PM New York, New York – Stocks on Wall Street traded sideways ahead of economic growth data this week. Dollar Tree agreed to acquire Family Dollar for $8.5 billion. Real estate listing site operator Zillow acquired the rival Trulia for $3.5 billion. Yukos owners won $50 billion award in Holland.
Stocks on Wall Street declined after weaker than expected housing market and a private index of service sector held at a 41/2-year high.
Tollbooth Index fell 0.2% or 15.93 to 9,474.88 and S&P 500 index decreased 0.4% to 1,970.13 and the Nasdaq Composite Index fell 0.5% to 4,425.42.
Merger related stocks were in focus and the recently priced El Pollo Loco Holdings Inc, a restaurant chain, extended stock advance from its initial price offering on Friday.
Dollar Tree Acquires Family Dollar
Monday merger news kept investor attention to two large deals in retail and in Internet sectors.
Dollar Tree Inc based in Chesapeake, Virginia agreed to acquire rival Family Dollar Stores Inc based in Charlotte, North Carolina in cash and stock valued at $8.5 billion and increase its network of stores to 13,000.
Family Dollar stores will receive $59.60 cash and the equivalent of $14.90 in shares of Dollar Tree for each share they own.
Two companies in a press release valued the transaction at $74.50 a share, 23% premium to Family Dollar’s closing price on Friday. The value of the deal increases to $9 billion when debt and other costs are included.
After the merger, Family Dollar stockholders will own between 12.7% and 15% of outstanding shares of Dollar Tree.
Zillow and Trulia Merge
Online real estate listing site operator Zillow Inc agreed to acquire Truilia for $3.5 billion in stock and the deal is expected to close in 2015.
The two sites will retain their separate identity and together they have 137 million unique visitors last month.
The two companies combined revenues is only 4% of the $12 billion spent a year on advertising annually. Most of the advertising is still in the traditional print, radio and television channels.
European markets were lackluster as tensions in Europe persisted and a Dutch court said Russia should reimburse $50 billion to Yukos shareholders.
The arbitration panel said confiscated assets.
In London trading, FTSE 100 index slid 0.1% or 6.82 to 6,784.73 and in Frankfurt the DAX index slumped 0.6% or 59.63 to 9,584.38.
In Paris, CAC 40 index rose 0.2% or 10.73 to 4,341.28.
Aberdeen said at the end of last quarter assets under management dropped on £8.8 billion outflows.
The U.K. based low cost airline Ryanair said profit surged 152% to €197 million on 11% increase in revenue.