Investors Favor Mergers, Indices Climb
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Take one of the largest mergers in history and you might get a good day on Wall Street. That is what happened today as America Online and Time Warner merged in an all-stock combination valued at $350 billion. The value of the proposed deal and prospect for continued consolidation sent Internet issues considerably higher.
internet.com's Internet Stock Index jumped 49.90, or 6.03 percent, to 877.78, the Nasdaq Composite rocketed 167.05 (its larget point gain ever) to 4049.67 and the Dow Jones industrial average gained 49.64 to 11572.20.
America Online Inc. (AOL) lost 2-1/4 to 71-1/2 and Time Warner Inc. (TWX) soared 25-1/8 to 89-7/8. The company, to be named AOL Time Warner, with combined revenues of over $30 billion will be able to deliver and cross-promote its offerings across all media platforms.
E.piphany Inc. (EPNY) rose 24-3/4 to 181-1/4. The company, whose software analyzes Web traffic data, reported a quarterly loss of 24 cents, down from $1 a year ago.
PSINet Inc. (PSIX) jumped 11-7/16 to 72-7/16. The Internet provider Monday said it expects to report revenues of $185 million for the quarter ended Dec. 31 and $1.1 billion for fiscal year 2000. Both numbers are higher than initial analysts' forecasts.
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