Analyst sees Elan, Pfizer combo unlikely; DOJ studies Centennial buyout; Crucell moves on deal talk

By Cristal Cody

New York, Jan. 9 - Shares of Elan Corp. plc fell 31 cents, or 3.56%, to $8.39 after investors had second thoughts about a rumored acquisition by Pfizer Inc., and market observers doubt a deal is afoot.

Also on Friday, Centennial Communications Corp. set the date for shareholders to vote on its $944 million acquisition by AT&T Inc. a day after it reported that the Department of Justice is taking a second look at the merger.

Meanwhile Friday, shares of Dutch biotechnology firm Crucell NV continued to climb on news of a possible takeover by U.S. drug maker Wyeth.

In other deal news, opposition to Exelon Corp.'s acquisition of NRG Energy Inc. emerged from the Delaware Public Service Commission.

Moving to Wall Street, dismal labor market data sent stocks down across all indexes.

The Dow Jones Industrial Average lost 143.28 points, or 1.64%, to finish at 8,599.18 Friday.

The S&P 500 index fell 19.38, or 2.13%, to 890.35, and the Nasdaq Composite index shed 45.42 points, or 2.81%, to close Friday at 1,571.59.

Elan-Pfizer combo not likely

Elan's stock had spiked 14.62% on Wednesday on rumors of a deal.

Analysts don't see it.

"I don't think this one really sits that well with Pfizer," said Jon Lecroy, an analyst with Natixis Bleichroeder. "Elan has their own program that's targeting a similar product and Elan has a lot of debt, so I don't think this one's going to happen."

Pfizer's stock fell 21 cents, or 1.19%, in trading Friday to $17.44.

Centennial, AT&T deal gets second look

Centennial said in its 10-Q filing with the Securities and Exchange Commission on Thursday that the Department of Justice made a second request in December for information on Centennial's wireless operations in Louisiana, Mississippi, Puerto Rico and the U.S. Virgin Islands.

Centennial shares fell 6 cents, or 0.73%, to $8.11 Friday, while shares of AT&T rose 35 cents, or 1.41%, to close at $25.24.

Also according to the filing, the Federal Communications Commission has set Thursday as the deadline for petitions or comments on the merger.

Centennial Communications shareholders will vote Feb. 24 on whether to accept the $8.50-a-share cash buyout by AT&T.

The companies expect the deal to close in the second quarter of 2009.

Crucell rises on Wyeth deal talk

Crucell shares rose 29 cents, or 1.26%, to close Friday at $23.29 after a 35% increase on Thursday when the company said it has discussed a potential merger with U.S. drug-maker Wyeth.

Wyeth's stock fell 36 cents, or 0.94%, to close at $37.97.

Market observers aren't convinced Wyeth will seal a deal.

"It depends on how it plays out," an analyst said Friday. "They have plenty of cash, but it looks like there may be multiple bidders. I haven't seen any firm bids."

Sanofi-Aventis AS and Novartis AG also are being touted as potential bidders.

Shares of Sanofi-Aventis fell 74 cents, or 2.29%, to $31.60 in trading, while Novartis' American Depositary Shares lost $1.46, or 2.94%, to close Friday at $48.16.

Commission against NRG takeover

The Delaware Public Service Commission told the Federal Energy Regulatory Commission on Thursday that it has concerns about Exelon's acquisition of NRG and how the buyout would affect energy use and environmental improvements in the state. The commission has no regulatory authority over the deal, but it did file its response with the Federal Energy Regulatory Commission.

Exelon filed regulatory applications and notices in December with the Federal Energy Regulatory Commission, the Department of Justice and the Federal Trade Commission of its plans to acquire NRG.

Exelon made surprising gains in the hostile takeover attempt when it announced earlier in the week that it has received nearly 46% of NRG's outstanding shares in the tender offer.

The company has extended the exchange offer of 0.485 shares of Exelon stock for each share of NRG stock to Feb. 25.

Shares of NRG fell 41 cents, or 1.7%, to $23.70 Friday, while Exelon's stock dropped $1.18, or 2.13%, to close Friday at $54.17.

Mentioned in this article:

AT&T Inc. NYSE: ATT

Centennial Communications Corp. Nasdaq: CYCL

Crucell NV Nasdaq: CRXL

Elan Corp. plc NYSE: ELN

Exelon Corp. NYSE: EXC

Novartis AG NYSE: NVS

NRG Energy Inc. NYSE: NRG

Pfizer Inc. NYSE: PFE

Sanofi-Aventis AS NYSE: SNY

Wyeth NYSE: WYE

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