| Nylex falls after takeover bid withdrawn
SHARES in Nylex fell 17.5 per cent today after a private equity firm withdrew its takeover proposal for the building, automotive and plastic products maker. The stock ended down 35 cents to $1.65, after trading as low as $1.55 during the day. On Friday, after the market had closed, Nylex revealed that CHAMP Private Equity would not be making a firm offer for the company after its indicative offer of $2.65 a share in November. Nylex said talks with CHAMP had now ceased. Executive chairman Peter George said the Nylex board was not surprised the proposal had been withdrawn, given the recent turbulence in global financial markets. He said Nylex was still positioned to grow its businesses and build on the benefits of a restructuring program.
Williams Pipeline Partners stay flat in first-day public trading
Williams Pipeline units, each priced at $20, ended their first day of trading at $20 apiece. In after-hours trading, the units shed 4 cents. That's relatively good news on a day when stocks dipped at the end of one of Wall Street's weakest weeks. "On a down day, they ended up not down," Tulsa portfolio manager Jake Dollarhide said. "I think it further reinforces Williams' reputation." Williams Pipeline is the first major initial public offering of the year. Bad economic news has pushed share prices down and sent other fledgling issues to the sidelines. In fact, Williams was the only one of three initial public offerings planned for this week that made it to market. "It's a very skittish market, and there are no do-overs," Dollarhide said. "When you do an IPO, you have one chance to raise money." Williams initially said it expected to price its new units between $19 and $21.
Intel Is Optimistic, but Investors Bolt
A word of caution can be very risky these days. In its quarterly update on Jan. 15, Intel reported that demand for PCs and other gadgets made with its chips remained robust despite the economy's wobbles. But CEO Paul Otellini, despite declaring that "We remain optimistic about 2008," was reasonable enough to allow that the drumbeat of worrisome economic news is hard to ignore entirely. Investors issued a speedy verdict, slicing 14% off Intel's (INTC) already battered stock price soon after the fourth-quarter report. The shares tumbled an additional 12% in early trading the following day. Despite all reassurances to the contrary, Wall Street clearly fears that the chipmaker will be affected by the economic slowdown after all. Historically, semiconductor suppliers have been among the first technology companies to feel the heat during hard times.
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