Morning Commentary: Monster slips from par on news of buyout; Walter earnings miss expectations

By Stephanie N. Rotondo

Seattle, Aug. 9 – Monster Worldwide Inc.’s 3.5% convertible notes due 2019 were all the rage in early convertibles trading on Tuesday, according to one market source.

The source saw the issue at 99.25, which was off from previous trades around par.

The stock (NYSE: MWW) was meantime up more than 25% at mid-morning, as the market reacted to news that Randstad Holding NV was acquiring the job search and staffing services company.

Randstad will pay $429 million for Monster, or $3.40 per share – a 23% premium over Monday’s closing share price.

Meanwhile, a trader said Walter Investment Management Corp.’s 4.5% convertible notes due 2019 were bid at 42 in size early in the day, though only small pieces had been trading.

He said the smaller-sized trades were occurring around 34.

“Walter hasn’t made very good investments; that’s why they are trading in the 40s instead of the 90s,” the trader said.

The stock (NYSE: WAC), however, was getting a bump, rising 41 cents, or 17.98%, to $2.69.

The Tampa, Fla.-based loan servicing company reported its second-quarter results on Tuesday, showing a loss. The results missed analysts’ expectations.

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