Merger Rumors, IPOs Grab Headlines
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Takeover speculation dominated the news in the Internet sector on Wednesday, although most of the day's initial public offerings also rocketed.
internet.com's Internet Stock Index rose 9.43, or 1.87 percent, to 514.65, the Nasdaq Composite gained 17.87 to 2,598.13 and the Dow Jones industrial average shed 55.09 to 10,666.54.
EarthLink Network Inc. (ELNK) gained 4 to 61-1/4 amid continuing reports that Gateway Inc. is considering buying the Internet service provider. Both companies have refused to comment on the speculation, which caused EarthLink shares to climb 20 percent Tuesday.
Multex.com (MLTX), which provides research reports to individual investors, lost 2-5/16 to 26-11/16 on news that was acquiring Market Guide Inc. (MARG) in a stock deal worth $162.4 million. Market Guide shareholders will receive one share of Multex.com stock for each outstanding share of Market Guide stock, or approximately 5.6 million shares. Market Guide shares lost 1-3/8 to 21-5/8.
It was also a busy day for initial public offerings. TD Waterhouse Group Inc. (TWE) rose 1-5/8 to 25-5/8. The online broker, a unit of Canada's Toronto-Dominion Bank, sold 42 million shares at $24, raising slightly more than $1 billion. That's the largest Internet IPO ever.
Globespan Inc. (GSPN) also had a stellar introduction, rising 27-5/16 to 42-5/16. The company, which supplies chipsets for Digital Subscriber Line equipment, sold 3.25 million shares at $15 Tuesday, raising $48.75 million.
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