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By Jason Stipp | 06-04-2010 05:55 AM

Five Hits Taken in the Market

Morningstar markets editor Jeremy Glaser examines the damage after recent blows to Microsoft, BP, Facebook and others.

Jason Stipp: I am Jason Stipp for Morningstar and welcome to the Friday Five. It's a tough market out there, especially over the last few weeks, and a lot of companies have taken some hits; some unexpected, some not. Here with me to talk about five of those is Morningstar markets editor, Jeremy Glaser. Jeremy, thanks for joining me.

Jeremy Glaser: You're welcome, Jason.

Stipp: So what do you have for the Friday Five this week?

Glaser: Jason, this week we are going to see hits given by AIG, taken by China, another hit for BP, Microsoft taking a mighty blow, and finally we will take a look at some of Facebook's current woes.

Stipp: So it certainly seems like AIG giving anything like a hit to anyone is unexpected. Tell me a little bit about that one?

Glaser: It's kind of amazing for a company that's in such dire straits it, was for so long, is able to dictate the terms of a deal, but the purported deal for Prudential to buy their Asian insurance business fell through this week when AIG was unwilling to accept a lower offer that Prudential offered. It's surprising that AIG was able to stand up to them, but they believed that they can get more value for it out in the marketplace elsewhere as they walked away from the table, something that I don't think Prudential was expecting and a lot of market watchers didn't see coming either.

Stipp: So what does this mean for Prudential then if they were sort of taking a hit off of this deal falling through?

Glaser: It's probably going to end up being a net positive for them. There is a lot of concerns at least from the regulatory side that Prudential was going to have trouble getting this deal done, and expanding that quickly could have its problems. Shares actually rose once the deal came out, so it might have been an ego hit, but hopefully for shareholders it will end up for the best.

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