LinkedIn jumps outright, flat to slightly lower on swap; Iconix adds on exchange; ImmunoGen on tap

By Rebecca Melvin

New York, June 13 – LinkedIn Corp.’s convertibles jumped in very active trading Monday on news that Microsoft Corp. has agreed to buy the professional-oriented social media site for about $26.2 billion, or $196 per share, which represents a 50% premium to LinkedIn’s closing share price on Friday.

LinkedIn’s 0.5% convertibles due 2019 jumped about 6 points on an outright basis, but were flat to slightly lower on a dollar-neutral, or hedged, basis, a New York-based trader said.

“For outrights, it was a win, but on hedge, they were unchanged to a small loser,” the trader said.

Twitter Inc.’s convertibles were pulled into trading as market players speculated that there may be more acquisitions in store involving social media companies. The Twitter convertibles were up 1.5 points on swap amid this M&A speculation, as unfounded as it was, the trader said.

FireEye Inc. was another name in focus on Monday amid M&A news.

The FireEye bonds were up 0.5 point “at the most,” and its move was related to news that fellow software security company, Symantec Corp., is acquiring internet security firm Blue Coat Inc. for $4.65 billion.

Also trading actively on Monday were Iconix Brand Group Inc.’s 1.5% convertibles due 2018 after the New York-based brand management company agreed to exchange $104.95 million of the senior subordinated notes due 2018 for $35.2 million in cash and up to 6.8 million shares.

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