Newspaper article THE JOURNAL RECORD

Huge Merger Gives Market Modest Boost

Newspaper article THE JOURNAL RECORD

Huge Merger Gives Market Modest Boost

Article excerpt

NEW YORK (AP) _ Cable and entertainment stocks soared Wednesday after announcement of one of the largest mergers ever, the combination of Bell Atlantic and Tele-Communications Inc.

The broader market, however, didn't experience the feverish trading. The Dow Jones industrial average gained a modest 10.06 points to close at 3,603.19. In an even broader measure of market activity, declining issues outnumbered advances about 10 to 9 on the New York Stock Exchange.

Volume on the floor of the Big Board came to 290.90 million shares as of 4 p.m., up from 263.94 million in the previous session.

The Nasdaq electronic stock market, a traditional haven for technology issues, saw extremely heavy volume of 415.36 million shares, far exceeding the previous record of 343.2 million set on May 20.

The Nasdaq composite index closed up 6.51 points at 778.97, the third straight record, exchange officials said.

The $21.4 billion Bell Atlantic and Tele-Communications Inc. merger, the second-largest merger ever, captured the imagination of market participants. Many cable and entertainment businesses saw their stocks jump dramatically.

"Anything related to the information highway did extremely well today," said Mary Farrell, first vice president at PaineWebber Group.

Disney gained 4 at 44 and Time Warner gained 1 at 44, both in active dealings. On the American Stock Exchange, CableVision Systems gained 9 at 63.

The deal puts a new spin on the brewing takeover battle for Paramount Communications Inc. TCI is main mover behind a $9.5 billion bid by QVC Network Inc. for Paramount. Viacom Inc. first entered a bid for Paramount, a diversified media and communications company.

Bell Atlantic was up 5 at 65 in heavy trading on the NYSE, while Tele-Communications Inc. class A shares, the most active issue on the Nasdaq, were up 3 at 31. …

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