UTi Worldwide up on takeout news; Chesapeake Energy rebounds; SanDisk extends swap gains

By Rebecca Melvin

New York, Oct. 9 – UTi Worldwide Inc.’s convertibles climbed early Friday along with the underlying shares of the ocean freight and logistics company after it announced that it is being acquired by DSV for $7.10 per share in cash, or a 50% premium to UTi’s closing share price on Thursday.

The deal triggers the change-of-control feature of UTi’s 4.5% convertibles due 2019, and those bonds jumped to about 100 from the mid 70s, a New York-based trader said.

Elsewhere, some of the beaten-down issues in U.S. convertibles continued to rebound, particularly in the energy and technology sectors as outright buyers and momentum buyers stepped in.

Still, there were some market players selling into strength, but pricing remained firm for the most part, a New York-based trader said.

Overall, convertibles expanded about 0.375 point to 0.5 point on the day, according to a second New York-based trader.

“A lot of things are substantially better today,” the trader said.

In energy, Chesapeake Energy Corp. continued to see recovery after being crushed several weeks ago.

“Some of the longer-dated stuff really had a good bounce,” a trader said of Chesapeake.

In technology, SanDisk Corp.’s convertibles continued to trade actively and higher, a day after news that it has inked a partnership with Hewlett-Packard Co. to develop new data storage solutions.

In health care, Illumina Inc. had some buyers following a strong down move this week that was overdone, the trader said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.