Qihoo bonds rise outright, on swap with higher Asian stocks; Mylan trades up outright

By Rebecca Melvin

New York, April 8 – Convertibles were better bid on Wednesday as demand for Asian internet bonds pulled those names higher following positive overnight trading of Asian stock markets. That sector strength seemed to spill over into other areas of the convertibles market, sources said.

Ctrip.com International Ltd. continued to trade actively after a busy Tuesday, and convertibles players moved into related names, including Qihoo 360 Technology Co. Ltd., which saw its three convertible bond issues expand on a swap basis amid an 11% jump in the underlying shares of the Beijing-based internet and mobile security products company.

“Generally, I feel like stuff is better to buy. The Chinese converts this morning were all better with the Chinese equity market better overnight,” a New York-based trader said.

Also early in the day, energy convertibles saw some strength amid a flurry of trading following news about the bid by the Shell oil and gas company for British rival BG Group for about $70 billion.

Mylan NV said it has made a bid for rival generic drug company Perrigo Co. plc for $205.00 per share, or almost $29 billion, a combination that would create a global pharmaceutical leader with a broad and diverse portfolio across branded, generic and OTC products.

Mylan’s 3.75% convertibles due in September surged to about 510 from 450 while shares of the Potters Bar, England-based generic and branded drug maker jumped 15%.

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