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Options Update: EchoStar Volatility Flat into $2B Acquisition of Hughes Communications

EchoStar (SATS) announced an agreement to acquire all of the outstanding equity of Hughes Communications (HUGH) in a transaction valued at approximately $2 billion. EchoStar overall option implied volatility of 29 is near its 26-week average of 31, according to Track Data, suggesting slightly lower price movement.

Emergency Medical Services (EMS) and Clayton, Dubilier & Rice announced a definitive merger agreement under which an affiliate of CD&R will acquire EMSC for $64.00 in cash for each share of EMSC Class A common stock and Class B common stock and each LP Exchangeable Unit. Overall option implied volatility of 16 is below its 26-week average of 32, according to Track Data, suggesting decreasing price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com.

U.S. Stock Futures Down Slightly After Last Week's Gains

U.S. stock futures are slightly lower this morning, after the previous week's gains. Investors are awaiting the release of President Obama's budget. Futures on the Dow Jones Industrial Average fell 3 points to 12,238 and S&P 500 futures dropped 0.40 point to 1,327. Nasdaq 100 futures fell 0.50 point to 2,378.

European markets were mixed today. While STOXX Europe 600 Index has gained 0.39%, London's FTSE 100 Index moved down 0.23%.

Asian markets ended higher, with Japan's Nikkei Stock Average gaining 1.13%, Australia's S&P/ASX 200 moving up 1.06% and China's Shanghai Composite gaining 2.55%.

Continue reading U.S. Stock Futures Down Slightly After Last Week's Gains

Mergers I'd like to see -- Cubbies (TRB) and Emergency Med (EMS)

Most mergers are driven by the notion, sometimes wildly mistaken, that the combination will bring both a competitive advantage. Some pairs of companies, however, seem so intuitively right for one another, no bottom-line considerations should be allowed to interfere with their matrimony. Like a foul ball and a plate glass window, these two were meant for one another.

Pity the poor Chicago Cubs fan. The modern Sisyphus has spent a century coaxing his baseball team to the verge of greatness, only to see it collapse into a pile of baseline chalk time after time. The 2007 season was especially painful, after investing $136 million in slugger Alfonso Soriano and inking one of the game's best managers, Lou Piniella. The team eked into the playoffs, only to be swept in three games by the Arizona Diamondbacks.

The Cubs are part of The Tribune Company (NYSE: TRB), currently in the process of being bought by Sam Zell. Many expect the Cubs to be sold when/if this deal is completed.

Given that the Cubs have provided a century of heartbreak to the windy city, perhaps the team should merge with a company that can make money off of fans' paroxysms. Emergency Medical Services (NYSE: EMS) could be such a partner.

Continue reading Mergers I'd like to see -- Cubbies (TRB) and Emergency Med (EMS)

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 12, 2012: 11:47 PM

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