U.S. indices fell across the board Monday as stocks struggled to shake off the weight of declining crude prices.
Out of character from the rest of the market, however, there were a few stocks spiking in double-digits today and most of that movement was in response to mergers and acquisitions news. Here is a rundown of the major M&A activity from today.
Ruckus Wireless (RKUS) agreed to be acquired by Brocade Communications Systems (BRCD) for $1.5 billion. Under the agreement, Brocade will buy the mobile network company for $6.45 per share in cash and 0.75 share of Brocade stock for each share of Ruckus common stock.
"The acquisition will complement Brocade's enterprise networking portfolio, adding Ruckus' higher-growth, wireless products to Brocade's market-leading networking solutions," Brocade said in its press release. "It will also significantly strengthen Brocade's strategic presence in the broader service provider space, with Ruckus' market-leading Wi-Fi position."
Ruckus Wireless shares were through the roof, rising 32%, while Brocade shares declined 14%.
"The combination of our two companies will create an exciting new thought leader in networking and significant opportunities for our stakeholders to participate in the combined company's future growth potential," said Selina Lo, president and CEO of Ruckus. "We operate in adjacent segments of the larger networking market with a number of common customers for our complementary products, and have a successful track record of working together. We are excited for the opportunity to join the Brocade team and to jointly deliver innovative, value-added solutions to our enterprise and service provider customers."
Meanwhile, the tie-up of luggage manufacturers Samsonite International (SMSEY) and Tumi (TUMI) was back in the spotlight Monday as Samsonite prepares to roll out the financing plan for the acquisition of its rival.
Samsonite plans to launch a $675 million institutional term loan B and a $1.25 billion so-called term loan A, as well as $1 billion in revolving credit facilities that essentially function as corporate credit cards to pay for the acquisition.
Earlier today, Real Money's James Passeri reported that the company is teaming up with Morgan Stanley to launch a nearly $3 billion credit package to investors Tuesday. Combined, the two companies saw about $3 billion in revenue last year.
Shares of Samsonite were basically flat on Monday while Tumi fell 0.3% to $26.84.
Virgin America (VA) shares soared 42% Monday after the company agreed to be acquired by Alaska Air Group (ALK) for $2.6 billion, or $4 billion including debt considerations.
The move will bolster Alaska Air's position as one of the premier airlines on the West Coast. "Our employees have worked hard to earn the deep loyalty of customers in the Pacific Northwest and Alaska, while the Virgin America team has done the same in California. Together we will continue to deliver what customers tell us they want: low fares, unmatched reliability and outstanding customer service," said Alaska Air CEO Bradley Tilden.
Despite the benefits the planned tie-up would produce, Virgin America founder Richard Branson wrote a blog post Monday detailing his unhappiness with the deal. "I would be lying if I didn't admit sadness that our wonderful airline is merging with another. Because I'm not American, the U.S. Department of Transportation stipulated I take some of my shares in Virgin America as non-voting shares, reducing my influence over any takeover. So there was sadly nothing I could do to stop it."
Alaska Air shares closed trading down nearly 4% to $78.92.
Finally, Baker Hughes' (BHI) mega-merger with Halliburton (HAL) is in jeopardy, according to a New York Post report Monday. The U.S. Department of Justice is looking to block the deal on antitrust grounds, according to Post sources.
The $35 billion merger of the world's second and third largest oilfield service firms could still go through with enough divestitures from the two companies. Halliburton has said previously that it would be willing to sell assets with as much as $7.5 billion in 2013 revenue in order to meet antitrust concerns.
However, the Post reported that regulators are asking Halliburton to sell assets with about $10 billion in revenue.
Baker Hughes can walk away from the deal at the end of April, at which point Halliburton would be on the hook for a $3.5 billion breakup free.
Shares of Baker Hughes shares fell 3.5% Monday while Halliburton shares also traded down, closing 3% lower.