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Kevin Pendleynyse:iwm, nyse:wwy, nyse:brk, nyse:f, nyse:dep, nyse:cot, nasdaq:tbbk,

Higher opening seen on M&A news, overseas gains

Kevin Pendley  |  Apr 28, 2008 8:57am EDT  |  User Rating N/A

Small-cap shares are expected to open modestly higher Monday after tame overnight gains. The Russell 2000 (NYSE:IWM) rose about 0.3% in after-hours trading, which would equate to a cash opening near 723.50.

Stocks are expected to find an early bid in line with gains in overseas stock index products. Japan’s Nikkei was up 0.2%, Hong Kong’s Hang Seng was up 0.59%, the Aussie market was up 0.2% and the European DJ Stoxx 50 was up about 0.85%. European shares were lifted by talk that some analysts were saying that the worst of the credit issue was in the past for big European banks.

A psychological lift this morning could be tied to news of a $22-billion takeover of Wrigley (NYSE:WWY) by Mars Inc. and Warren Buffet’s Berkshire Hathaway (NYSE:BRK). Buffet said on CNBC this morning that he was a “financing partner” in the deal, accounting for about $6.5 billion of the acquisition. Seeing merger and acquisition activity in the current market environment could ease some of the ongoing concerns about the credit crunch. Wrigley shares were up a whopping 28% in after-hours trading.

Also, Kirk Kerkorian’s Tracinda Corp. said it would make a cash offer for 20 million shares of Ford Motor Co. (NYSE:F) at $8.50 a share, which is a . . .



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