Stocks were mostly lower this morning as enthusiasm over a last-minute Cyprus bailout deal proved short lived.
The European Union, International Monetary Fund, European Central Bank and Cyprus reached an agreement late this weekend to restructure the island nation’s struggling financial system. One of the country’s largest banks (Laiki) will be split up and its good assets will be merged into the Bank of Cyprus while its non-performing assets will be wound down. Unlike in previous proposals, deposits of up to 100,000 euros will be untouched while deposits above that level will be subject to a haircut. The country also implemented capital controls to keep euros from flowing out of the country.
Stocks on the Move
Dell (DELL) confirmed today that it has received two additional buyout offers. Both new bidders, activist investor Carl Icahn and private equity firm Blackstone Group say that Michael Dell’s initial offer of $13.65 a share is too low. Icahn is offering $15 a share while Blackstone’s bid is slightly lower at $14.25 a share. Both of the new proposals would keep part of the company’s equity public. Dell shares rose 2.75% to over $14.50 on the news.
Dollar General (DG) reported decent fourth-quarter results and guided for 10%-12% top-line growth, 4%-6% same-store sales growth, and 8%-13% earnings per share growth in 2013. Fiscal 2012 sales increased more than 10% (excluding the impact of an extra week in 2011), while an increase in traffic and average transaction price helped to drive a comparable same-store sales increase around 4.7%. The strong comp was primarily driven by an increase in consumable items, including snacks and beverages. Shares were up less than 1% at midday.
Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.