Holiday weighs on convertibles liquidity; ViroPharma boosted by Shire acquisition news

By Stephanie N. Rotondo

Phoenix, Nov. 11 - A convertible bond trader said the market was quiet given the Veterans Day holiday.

Still, he noted that ViroPharma Inc.'s 2% convertible notes due 2017 were "trading like crazy" following news the company was going to be acquired by London-listed Shire plc in a deal valued at $4.2 billion, or $50.00 per share.

The price per share was an over 27% premium to ViroPharma's closing share price on Friday.

ViroPharma's convertibles traded up to a 265 handle in Monday trading, which compared to Friday trades in a 212 to 214 range.

The stock was meantime up $10.00, or 25.39%, to $49.38.

Meanwhile, a trader said Navistar International Corp.'s stock was trading near 52-week highs and the convertible bonds were "tracking up" with the equity.

The trader deemed the 3% convertible notes coming due next October as up slightly to a 104.375 to 104.625 context. The equity was trading at $41.29, up $1.47, or 3.69% in midafternoon but closed up $1.10, or 2.76%, to $40.62.

The stock's high of the day was $41.97.

Mentioned in this article:

Navistar International Corp. NYSE: NAV

ViroPharma Inc. Nasdaq: VPHM

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