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Big Companies in the M&A Crosshairs

Among the companies making M&A headlines are QUALCOMM, Inc. (NASDAQ:QCOM), International Business Machines Corp. (NYSE:IBM), and Expedia Inc (NASDAQ:EXPE)

Aug 6, 2015 at 2:10 PM
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It's been a busy couple days for M&A activity. Yesterday, for example, reports broke that EMC Corporation (NYSE:EMC) is considering being bought out by subsidiary VMware, Inc. (NYSE:VMW). Today, it's more of the same, with a number of notable companies in the M&A spotlight, including QUALCOMM, Inc. (NASDAQ:QCOM), International Business Machines Corp. (NYSE:IBM), and Expedia Inc (NASDAQ:EXPE). Here's a quick rundown on the action, and its impact on the charts.

QCOM has agreed to buy Ikanos Communications, Inc. (NASDAQ:IKAN), which specializes in creating hybrid fiber-copper networks that can transmit data at speeds exceeding 1G bits per second. The news has sent IKAN shares through the roof, up nearly 54% at $2.69 -- or just below the purchase price of $2.75 per share -- unimpeded by the company's second-quarter earnings miss. QUALCOMM, Inc., meanwhile, is down 1.8% at $62.76.

IBM will purchase Merge Healthcare Inc. (NASDAQ:MRGE) for roughly $1 billion, or $7.13 per share, with the intention of combining the medical imaging firm with its Watson Health platform. As a result, MRGE shot to a three-year high of $7.12 earlier, and was last seen up 31.2% at $7.10. On the flip side, International Business Machines Corp. has barely budged, inching 0.1% higher at $156.74.

Finally, a hotel lobbying group is urging the government to stop EXPE's planned merger with Orbitz Worldwide, Inc. (NYSE:OWW), claiming it would "severely reduce customer choices." The backlash is weighing on shares of Expedia Inc, down 4.6% at $121.03. By contrast, OWW is up 1.2% at $11.46, despite the company's disappointing turn in the earnings confessional.
 

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