Digest: Google shares hit all-time high
EmptyShares of Google Inc. rose to an all-time high Monday after the company said that it has agreed to acquire electronic communications security software firm Postini for $625 million in cash. Google shares went as high as $548.74 before closing up 0.6% at $542.56. The company will run Postini as a division of its Google Apps hosted applications unit. The deal is expected to be completed during the third quarter. Postini has 35,000 businesses as customers and 10 million users.
Deutsche Bank analyst Doug Mitchelson downgraded shares of Cablevision Systems Corp. from "buy" to "hold," arguing that the controlling Dolan family, led by chairman Charles Dolan, will not raise its offer to take the cable operator private by much. Market observers had argued that the Dolans would raise their $36.26 per-share buyout offer. However, Mitchelson argued in a report Monday that while the clan could raise its bid to $40 a share, it is not likely to boost it more than that. He also warned that if the Dolans dropped their offer again, many investors could sell the stock over the near-term. Cablevision shares closed down 0.7% at $38.03.
Movie Gallery selling
Schultze Master Fund Ltd. has sold more than 1.6 million shares of troubled video rental firm Movie Gallery Inc. at prices of 62 cents-73 cents each, the investment firm said in a regulatory filing Monday. The fund has about 8.9 million shares remaining in the company following the transactions that occurred last week, according to the filing. Movie Gallery last week saw its stock drop 65% in a day after it said it has been unable to meet debt requirements. As a result, the firm said it has started exploring strategic options, including a possible sale.