MIPS Amends Merger Agreement and 2 Stocks Reaching 52-Week Highs
Computer Sciences (NYSE:CSC) closed up 2.47 percent on the day at $40.58, even though the United States government is said to have terminated one of its key contracts. The General Services Administration terminated a $475 million infrastructure support contract that the company had obtained with the FDIC, says the privately held SRA International, its competitor. SRA had opposed the award of the contract to GSA, which supported SRA’s protest, according to a Securitites and Exchange Commission filing late on Friday. The government will solicit new tech proposals for the project and will award a new contract, said SRA. In a note to investors earlier Monday, analyst Edward Caso, Jr. at Wells Fargo said that CSC was supposed to derive a significant amount of revenue from the deal during the fourth quarter, adding that the GSA’s decision is an “unusual disappointment” for CSC, which had recently had enjoyed a string of good news. Both CACI International (NYSE:CACI) and Lockheed Martin (NYSE:LMT) were also finalists for the deal, said Caso, who maintained a Market Perform on CSC. In early trading, CSC rose 0.68 percent to $39.87, while CACI added 0.86 percent to $54.85. Shares of Computer Sciences have traded in a 52-week range of $22.19 to $40.34.
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Mips Technologies (NASDAQ:MIPS) will merge with Imagination Technologies Group, as originally reported on November 5th with all amendments thereto. The most recent amendment allows a purchase price of $100 million, and as a result of which, the net proceeds to each holder of MIPS common stock, following the consummation of the previously announced proposed patent sale transaction with Bridge Crossing and proposed recapitalization, has risen to around $7.94 per share in cash. The amendment follows the submission of a definitive proposal from CEVA (NASDAQ:CEVA) to purchase MIPS for $90 million, which was announced on December 12th to have been determined by the latter’s board to be a “Superior Proposal” to the merger agreement with Imagination. Shares closed up 0.77 percent of the day at $7.83, having been traded in a 52-week range of $3.91 to $7.85.
Siemens (NYSE:SI) has been contracted by Florida Power & Light Company, part of NextEra Energy (NYSE:NEE), to provide three highly efficient and flexible H-Class gas turbines through which to modernize its Port Everglades Next Generation Clean Energy Center, which is set to begin commercial operation in 2016. Because of the high degree of efficiency of the latest Siemens turbine tech, FPL anticipates that the modernized plant will generate power using about one-third less fuel per megawatt per hour than the existing facility. Over its 30-year operational life, the new plant should produce more than $400 million in net savings for FPL customers over and above the cost of construction. Shares closed up 0.42 percent on the day at $108.24, and have been traded in a 52-week range of $77.88 to $108.16.
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