Stocks in the news: Rohm & Haas, Citigroup, Genentech
Rohm & Haas (ROH) reached a tentative deal to be bought by Dow Chemical (DOW) for the original price of $15.3 billion in cash, or $78 a share. Dow will use asset sales, job cuts and new debt to try to maintain investment-grade credit ratings to fund the "rich" price for Rohm. ROH shares advanced nearly 5 percent in premarket trading, DOW's sank 7.6 percent.
Citigroup (C) was profitable in the first two months of 2009, according to a memo from CEO Pandit. It is also confident about its capital strength after tough internal stress tests. Still, the Wall Street Journal reports the government is still looking at additional help should the bank need it. Citi shares are gaining over 18 percent in premarket trade.
Genentech (DNA) will likely be in focus today following the Merck (MRK)-Schering Plough (SGP) $41 billion merger Monday. Roche has reportedly increased its offer for the remaining shares it doesn't already own to $95-a-share, and Genentech's board is now likely to agree.
Texas Instruments (TXN) shares are gaining 2 percent in premarket trade despite narrowing its first-quarter revenue outlook. TXN also said it now expects the quarter to yield results in a range from a loss of 8 cents a share to break-even, compared to analysts current expectations of a loss of 2 cents a share, according to Thomson Reuters.
Palm (PALM) is increasing the size of its planned public offering to 23.13 million shares and priced the deal at $6. PALM shares gained over 4.5 percent in premarket trade.
HSBC Holdings (HBC) advanced 11 percent in premarket trade after its shares slumped on Monday to 1995 levels.
Bank of America (BAC) is advancing over 15 percent in premarket trade, continuing its recent climb.
Other Dow companies, Caterpillar (CAT) and General Electric (GE) are both gaining over 4 percent in premarket trade, while Capital One (COF) is continuing to soar a day after it cut its dividend, up over 14 percent in premarket trade. Stifel Nicolaus upgraded COF from Hold to Buy.
Daimler (DAI) also rose over 9 percent in premarket trade after Morgan Stanley upgraded it.