Convertibles action slows ahead of holiday; Cemex better; Yahoo!, Intel slip on swap

By Rebecca Melvin

New York, May 22 – Cemex SAB de CV traded actively for a second straight session in U.S. convertibles on Friday after the Monterrey, Mexico-based cement producer agreed to exchange about $626 million of the Cemex 3.25% convertibles due 2016 for new 3.72% convertibles due 2020 plus shares.

The whole complex of Cemex convertibles was up, a New York-based trader said. On Thursday, the existing Cemex bonds traded better on a swap basis, but the new paper struggled.

Elsewhere, Yahoo! Inc. was in trade – as has been the case for much of the week – and the 0% convertibles due 2018 were flattish on an outright basis but lower on swap by about 0.5 point, a New York-based trader said.

Intel Corp.’s convertibles were also lower on swap, with the Intel issues mostly offered, a New York-based analyst said.

Ctrip.com International Ltd.’s convertibles jumped more than 10 points on an outright basis with shares of the Shanghai-based internet travel site up 17.5% after news that the company has taken a 37.6% stake in ELong Inc. for $400 million.

ELong is a mobile and online travel service provider in China, and the stake puts the two companies on more collaborative, rather than competitive, footing.

Ctrip’s 1.25% convertibles due 2018 traded as high as 129, which was up from 117 previously. Late in the day, it traded at 127.5 with shares at $84.50, which was up 17%.

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