>>> Mediaset unimpressed by Telefonica's offer for 22% stake in Digital Plus

Mediaset unimpressed by Telefonica's offer for 22% stake in Digital Plus 

Mediaset, the listed, Italian media group, is understood to be unimpressed by an offer tabled by Spanish telco Telefonica for its 22% stake in the Spanish pay TV operator Digital Plus.

An unsourced article in Italian-language daily Il Messaggero reported this information. The report said Telefonica is believed to have offered EUR 350m for the stake. It is possible that Mediaset was holding out for a better price, the item noted.

Mediaset has, under the terms of the contract it signed in 2009 when it first took the 22% stake in Digital Plus, until 20 June to decide on whether to match Telefonica's offer for a 56% stake in Digital Plus that has been accepted by the vendor Prisa. The report said its other two are options to sell its stake or remain in Digital Plus with its 22% holding.

The report said that if Mediaset decides to match Telefonica's offer, the two companies would divide the stake between them and would hold 50% each in Digital Plus.


Source Il Messaggero

>>> Orange-Deutsche Telekom merger rumours resurface

Orange-Deutsche Telekom merger rumours resurface 

Rumours about a potential merger between the listed, French and German telcos Orange and Deutsche Telekom have resurfaced, French daily Le Figaro reported.

The unsourced article said that Deutsche Telecom is believed to be looking to sell its US operations, which would make the German group into a size similar to that of Orange. Stephane Richard, head of Orange, had previously said that a tie-up could be considered only if it was a merger of equals.

The report, however, noted that Tim Hoettges, head of Deutsche Telekom, said last month that he was not involved in any talks regarding a potential merger of his group.


Source Le Figaro

>>> Metrovacesa shareholder Bankia cannot find buyer for its 19% stake

Metrovacesa shareholder Bankia cannot find buyer for its 19% stake 

Bankia is still seeking a buyer for its 19% stake in the Spanish property company Metrovacesa, El Confidencial reported citing financial sources. According to the report, hedge funds keen to acquire other Spanish property assets are shying away from buying a minority stake in an unlisted company whose main shareholders are Spain's largest banks.

After selling its stake in the French property company Gecina, Metrovacesa will cancel part of its debt, which will be cut to around EUR 2.8bn, the Spanish-language report said. But Bankia cannot wait for the further two years it may take for Metrovacesa's debt to be absorbed, the paper said.

Metrovacesa had a market capitalisation of EUR 2.233bn when it was delisted, but today Bankia's 19% stake is likely to be worth around EUR 100m, El Confidencial said.

Bankia is Metrovacesa's second-largest shareholder behind Banco Santander, which holds a 36.82% stake. BBVA has 18.31%, Banco Sabadell 13.04% and Banco Popular 12.64%.


Source El Confidencial

>>> What to look at today

US Market slighty higher, sentiment was boosted today by M&A with 3 deals annoucement, Apple (AAPL 93.70, +1.48) rose 1.6% on its first day of trading after the recent 7:1 share split. The industrial sector finished ahead of the broader market, but the strength among defense contractors (PHLX Defense Index +0.8%) masked the underperformance of transport stocks, cyclical sectors finished in line with or ahead of the broader market, the same could not be said for the four defensive groups. The telecom services sector tacked on 0.1%, while consumer staples (-0.1%), health care
(-0.5%), and utilities (-0.7%) settled in the red, Consumer staples spent the bulk of the session in negative territory, volume continue to be below average @ 595mil shares...VIX @ 11.15 +3.91%...- Overnight, PBoC announced targeted reserve requirement ratio (RRR) cut of 50bps for certain qualified entities, covering 65% of urban banks and 80% of
rural banks. PBoC also warned the direction of monetary policy has not changed, and that it would maintain a prudent policy approach....May CPI hit a 4-month high of .5%, beating estimate of 2.4%, as food CPI component spiked up by 4.1%. NBS...Nikkei -0.85% HS+0.74% Shanghai+0.91%...

Eur$ 1.3595 S&P Fut -0.29% European fut -0.03%

Macro
- IMF's Lagarde: There is a risk that the economy could encounter a period of low inflation; emerging markets are supply the majority of global growth
- Weidmann Says ECB Measures Were ‘Wake-Up Call’: Boersen-Zeitung
- China May Retail Auto Sales Rise 13.2% on Year, PCA Says


Keep an eye on :
- ACX SM : Acerinox to Maintain Dividend Payment, Expansion Says
- BAR BB : Pandora Ests. Boosted Most in SXQP, Swatch Among Biggest Cuts
- BMPS IM : Paschi PT Cut 94% to EU1.35 Post Rights Issue at Exane
- EN FP : Iliad’s Bid for Bouygues Telecom Said to Stumble Over Price Gap
- EN FP : Bouygues Telecom Plans Price Cuts to Challenge Free, Figaro Says
- CRG IM : Top Investor in Carige to Sell 11% Stake by Tuesday: Reuters
- CU FP : Bonomi Hires KPMG, McKinsey to Advise on Club Med, Echos Says
- DGE LN : Diageo Eliminates About 200 Jobs Amid Cost Cuts: Telegraph
- EDF FP : Proglio Denies Report He Used Job to Benefit Wife: Monde Link
- ELIOR IPO : Elior Said to Narrow IPO Price Range to EU14.50 to EU15/Shr
- OGZD LI : Russia Insists on $2b Gas Payment Before June 10 Deadline: IFX
- IMT LN : Imperial Tobacco Intends to Float Logista on Spanish Market
- PUB FP : Publicis Gets Approval for Up to EU1.84b Share Buyback
- OMV AV : OMV Petrol Ofisi AS Iraq govt says it may take punitive measures against OMV or other Turkish interests for buying oil from the Kurds
- TCH FP : Technicolor Agrees to Buy Canadian VFX Studio Mr. X Inc
- UHR VX : Pandora Ests. Boosted Most in SXQP, Swatch Among Biggest Cuts

>>> Brokers Upgrades & Downgrades

>>> Up
*AEFFE RAISED TO OUTPERFORM VS NEUTRAL AT MEDIOBANCA
*ASOS ADDED TO CONVICTION BUY LIST AT GOLDMA
*FIRST QUANTUM MINERALS RAISED TO OVERWEIGHT AT JPMORGAN
*HENKEL RAISED TO BUY VS HOLD AT SOCGEN
*WEIR GROUP RAISED TO HOLD VS SELL AT SOCGEN

>>> Down
*BG CUT TO NEUTRAL VS OUTPERFORM AT EXANE
*DIA CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*SPORTS DIRECT CUT FROM CONVICTION BUY AT GOLDMAN, STILL BUY

>>> PT Change


>>> Initiation
*ALENT REINSTATED BUY AT BOFAML, PT 400P
*DOMINO’S PIZZA RATED NEW BUY AT JEFFERIES; PT $85.00
*MAGYAR TELEKOM RATED NEW UNDERWEIGHT AT MORGAN STANLEY
*MTU AERO RATED NEW REDUCE AT INVESTEC, PT EU66
*ORANGE POLSKA RATED NEW EQUALWEIGHT AT MORGAN STANLEY
*SAFRAN RATED NEW ADD AT INVESTEC, PT EU54
*TECHNICOLOR RATED NEW OVERWEIGHT AT JPMORGAN; PT EU7.7

>>> Call
>> Stock
*ASOS ADDED TO CONVICTION BUY LIST AT GOLDMAN
*SPORTS DIRECT CUT FROM CONVICTION BUY AT GOLDMAN, STILL BUY

Les Echos : Andrea Bonomi passe en revue le Club Med

Envisageant une contre-OPA, l'homme d'affaires italien mobilise une équipe pluridisciplinaire.

Le calme semble revenu au Club Méditerranée après l'entrée fracassante du financier italien Andrea Bonomi dans son tour de table et sa montée au capital, au-delà des 10 %, via son véhicule d'investissement Strategic Holdings. Pour autant, on s'active autour de l'exploitant de villages de vacances, notamment du côté de l'homme d'affaires transalpin, qui fait désormais office de premier actionnaire.
Ainsi, les conseils d'Andrea Bonomi ont accédé, dès son ouverture la semaine dernière, à la salle d'information mise à disposition par le Club Med, afin qu'il puisse préparer une éventuelle offre publique d'achat, via l'entité Investindustrial Development SA. L'Autorité des marchés financiers lui a, il est vrai, enjoint de déposer ou non, au plus tard le 30 juin, une contre-OPA à celle en cours du duo franco-chinois Ardian-Fosun, soutenu par le management. A défaut de respecter cette échéance, Investindustrial Development ne pourra faire d'offre avant six mois.
Pour instruire le dossier avec minutie, outre la banque d'affaires Lazard, Andrea Bonomi a fait appel aux cabinets KPMG et McKinsey, au spécialiste de l'immobilier CBRE, aux avocats de Cleary Gottlieb, à l'assureur Willis, et a sollicité Havas Media.
En parallèle, le gestionnaire de fonds Polygon Global Partners, qui avait franchi le seuil de 5 % du capital en mars, continue de renforcer sa position. Il a porté sa participation à 6,23 % le 5 juin, au vu des mouvements de titres mentionnés par l'AMF. De quoi compromettre un peu plus l'OPA du duo Ardian-Fosun, qui vise au moins 50,01 % du capital, d'autant que le cours du Club Med se maintient nettement au-dessus du prix unitaire de 17,50 euros par action. Lundi, le titre en valait 19,65, en hausse de 13 % depuis le début de l'année.
Nouveaux villages chinois
Le devenir du Club Méditerranée est donc empreint d'incertitude, alors qu'il poursuit son expansion en Chine. Le Club, qui veut en faire son deuxième marché après la France à l'horizon 2015 et prévoit pour ce faire l'exploitation de cinq villages, inaugurera ainsi le 20 juin le troisième et le premier à vocation balnéaire : dans le cadre d'un contrat de management, il reprend un complexe hôtelier sur l'île de Dong'ao, située au sud du pays. Dans un premier temps sera seulement exploitée sa partie 5 Tridents - le top du Club Med -, le village 4 Tridents ouvrant le 1er novembre. La réalisation de ce projet doit beaucoup à l'entregent de Fosun en Chine. A ce titre, on imagine mal Andrea Bonomi se lancer à l'assaut du Club Méditerranée sans avoir la bénédiction de son grand partenaire local.
Dans ce contexte, où les cartes sont rebattues, on peut également s'interroger sur le caractère stratégique du Club pour Ardian, dont la position d'actionnaire de référence - avec Fosun - est sérieusement ébranlée. A moins de proposer une surenchère, jusqu'alors refusée, la société d'investissement va devoir composer avec le nouvel homme fort italien, à moins d'un désengagement à bon compte. L'ex-AXA Private Equity, qui s'était installé au Club Med fin juillet 2011 dépassant alors le seuil de 5 % du capital, pourrait être tenté aujourd'hui de valoriser son engagement. En l'espace de trois ans, le titre a crû de plus de 25 %, sa progression étant de près de 14 % depuis le début de l'année.

(Les Echos) Andrea Bonomi Hires KPMG, Mc Kinsey to Advise on Club Med

Considering a-OPA against the Italian businessman mobilizes a multidisciplinary team.

Calm seems to have returned to Club Med after the sensational debut of the Italian financial Andrea Bonomi in turn table and its rise to capital beyond 10%, through its investment vehicle Strategic Holdings . However, we are active around the operator of holiday villages, including the side of the Alpine businessman, who now serves as the largest shareholder.
Thus, the advice of Andrea Bonomi accessed since it opened last week, the information made ​​available by the Club Med room so that he could prepare for a possible bid , via the entity Investindustrial Development SA. The Autorité des marchés financiers has, it is true to him, ordered or not to file, no later than June 30, against a- OPA that during the Franco-Chinese duo Ardian-Fosun, supported by management. Failure to meet this deadline, Investindustrial Development may not make an offer for six months.
To investigate the matter carefully, in addition to investment bank Lazard, Andrea Bonomi appealed to firms KPMG and McKinsey, the real estate specialist CBRE, lawyers Cleary Gottlieb, insurer Willis, and asked Havas Media.
In parallel, the fund manager Polygon Global Partners, which had crossed the threshold of 5% of the capital in March, continues to strengthen its position. It has increased its stake to 6.23% on June 5, in view of trades reported by the AMF . What compromise a little more OPA duo Ardian-Fosun, which is at least 50.01% of the capital, especially as the price of Club Med is clearly remains above the price of 17.50 euros per action. Monday, the title was worth 19.65, up 13% since the beginning of the year.
Chinese new villages
The fate of Club Méditerranée is marked by uncertainty, as it continues its expansion in China. The Club, which wants to make its second largest market after France in 2015 and plans to do the operation of five villages and inaugurate on June 20 the third and the first seaside vocation within a management contract, he took a resort on the island of Dong'ao, located southeast of the country. Initially only be exploited its part 5 Trident - the top Club Med - the 4-Trident village opening on November 1. The realization of this project owes much to the interpersonal Fosun China. As such, it is hard to imagine Andrea Bonomi launch an assault on the Club Med without the blessing of his great partner.
In this context, where the cards are reshuffled, one can also wonder about the strategic nature of the club Ardian, the position of shareholder - with Fosun - is seriously undermined. At least offer a bid, previously denied, the investment company will have to deal with the new strong Italian man, unless disengagement cheap. Former AXA Private Equity , which was installed at the Club Med in late July 2011, when exceeding the threshold of 5% of the capital, might be tempted today to highlight its commitment. Within three years, the stock has increased by more than 25%, the increase is almost 14% since the beginning of the year.

>>> US After Hours

After Hours Summary: MCOX +22.2%, KANG +4.8%, ENZ +4.6%, SURG -3.2%, CASY -3.0% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: MCOX +22.2%, KANG +4.8%, ENZ +4.6%, LMNR +3.5%, TPLM +2.7%, SPCB +1.7%, PBY +1.4%

Companies trading higher in after hours in reaction to news: RCPT +36.8% (reported positive Phase 2 results for RPC1063 in relapsing multiple sclerosis; Study met primary efficacy endpoint with statistical significance after 24 weeks of treatment), CHS +11.9% (seeing reports that co is exploring going private), CVA +3.1% (co announces cost saving initiative and intention to increase quarterly cash dividend to $0.25 per share from $0.18 per share), ONNN +2.6% (to acquire Aptina Imaging for ~ $400 mln in cash; transaction is expected to be immediately accretive to earnings), SAVE +1.7% (disclosed May 2014 traffic increased 18.7% year over year), CVEO +1.0% (Jana Partners disclosed 11.5% active stake in 13D filing)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: SURG -3.2%, CASY -3.0%

Companies trading lower in after hours in reaction to news: DNDN -5.1% (announced John H. Johnson has informed the Board of Directors of his plans to step down as president and chief executive officer for personal reasons), BAS -4.5% (announced secondary public offering of 6 mln shares of common stock by DLJ Merchant Banking Partners III and related funds), ROYT -4.4% (announced secondary offering of ~2.654 mln trust units by selling unitholders), QIWI -2.9% (filed for offering of ~7.97 mln ADSs, with ~1.99 mln being sold by QIWI, 5.98 mln being sold by selling shareholdes), VRNT -1.6% (announced proposed concurrent underwritten public offerings of 5 mln shares of common stock and $300 mln of convertible senior notes due 2021), EBAY -1.4% (announced that PayPal President David Marcus is leaving the company on June 27 to lead Facebook's (FB) messaging products)

>>> Asian Update

Asian Market Update: China CPI rebounds on much higher food prices

***Economic Data*** - (CN) CHINA MAY CPI Y/Y: 2.5% V 2.4%E (4-month high) - (CN) CHINA MAY PPI Y/Y: -1.4% V -1.5%E (27th month of decline, smallest decline in 5 months) - (AU) AUSTRALIA MAY ANZ JOB ADS M/M: -5.6% V +1.9% PRIOR (first decline in 5 months; biggest decline in 3 years) - (AU) AUSTRALIA APR HOME LOANS M/M: 0.0% V 0.2%E; INVESTMENT LENDING: +2.3% V -0.6% PRIOR; OWNER-OCCUPIED LOAN VALUE: +1.4% V -1.0% PRIOR - (AU) AUSTRALIA MAY NAB BUSINESS CONFIDENCE: 7 V 7 PRIOR; NAB BUSINESS CONDITIONS: -1 V 0 PRIOR - (JP) JAPAN MAY MONEY STOCK M2 Y/Y: 3.3% (1-year low) V 3.2%E; M3 Y/Y: 2.6% V 2.7%E - (JP) JAPAN APR TERTIARY INDUSTRY INDEX M/M: -5.4% V -3.4%E (biggest decline in 3 years) - (NZ) NEW ZEALAND Q1 MANUFACTURING ACTIVITY VOLUME Q/Q: 0.5% V 5.4% PRIOR; MANUFACTURING ACTIVITY Q/Q: 0.6% V 6.0% PRIOR - (NZ) NEW ZEALAND MAY ANZ TRUCKOMETER HEAVY M/M: -2.1% V +1.2% PRIOR - (PH) PHILIPPINES APR UNEMPLOYMENT RATE: 7.0% V 7.5% PRIOR - (PH) PHILIPPINES APR EXPORTS: $4.5B V $5.3B PRIOR; Y/Y: 0.8% V 10.0%E - (UK) UK MAY BRC SALES LFL Y/Y: 0.5% V 1.6%E (2nd consecutive increase)

Market Snapshot (as of 03:30 GMT): - Nikkei225 -0.4%, S&P/ASX +0.3%, Kospi +0.5%, Shanghai Composite +0.5%, Hang Seng +0.3%, Jun S&P500 -0.1% at 1,949, Aug gold flat at $1,254, Jul crude oil +0.3% at $104.72/brl

***Highlights/Observations/Insights*** - Latest CPI data out of China that followed overnight announcement of targeted RRR rate cuts have further diminished the prospects for a broader and bolder system-wide liquidity injection, alleviating concerns over deflation that followed April's 1.8%, the lowest since Oct 2012. May CPI hit a 4-month high of 2.5%, beating estimate of 2.4%, as food CPI component spiked up by 4.1%. NBS noted that the prices of fruit rose a walloping 20%. Non-food CPI was up a more tame 1.7% y/y, in line with prior month. - Overnight, PBoC announced targeted reserve requirement ratio (RRR) cut of 50bps for certain qualified entities, covering 65% of urban banks and 80% of rural banks. PBoC also warned the direction of monetary policy has not changed, and that it would maintain a prudent policy approach. - Also of note in China, a press report noted that banks are investigating another instance of fraud in a second port after the initial inquiry into Qingdao Port dealings. CITIC Resources Holdings is down particularly sharply in the fraud fallout due to its exposure to Qingdao stockpile.

- ANZ job ads slump out of Australia may have been overshadowed by China inflation prints. The biggest decline in 3 years particularly bodes ill for the release of Australia's official employment data on Wednesday. Australia NAB business confidence surprisingly held up, helping briefly lift the AUD/USD pair above $0.9360 - up 20pips from the lows.

- Despite continued selling in US treasuries, higher yields are not leading to a rise USD/JPY. The pair fell over 20pips to 102.30 in the afternoon session, as traders continue to reprice the thinning case for more BOJ easing to the latter part of the year.

***Speakers/Political/In the Papers*** - (CN) Banks said to be investigating possible fraud in second port other than Qingdao Port - financial press - (CN) JPMorgan: China avg daily property sales volume 1.6K units, -49% w/w, -36% y/y in large cities - financial press - (CN) Many banks in China Zhejiang Province (Eastern China) non-performing loan ratio said to have exceeded 6% - Chinese press - (CN) China Securities Regulatory Commission (CSRC) approves the first 10 IPO applications; Marks official restart of IPO process since Feb - Shanghai Daily - (JP) Japan Econ Min Amari: Cabinet working with LDP tax panel on corp tax cut details - (JP) Japan Fin Min Aso: Govt to decide in Dec on further sales tax hike after looking at Q3 data - (JP) Japan said to be potentially prepared to give some ground on auto tariffs in TPP trade negotiations this week - Nikkei - (JP) According to the latest survey by Japan Center for Economic Research (JCER), nearly 40% of economists now expect BOJ to announce additional easing in October, nearly double from May survey - Nikkei - (KR) According to one survey, analysts are unanimous in expectation for Bank of Korea (BOK) to leave rates unchanged in June for the 13th consecutive month - Korean press - (KR) South Korea Finance Ministry releases monthly economic report: Economy continues modest recovery

***Fixed Income/Commodities/Currencies*** - (CN) PBoC to drain CNY40B in 28-day repos (32nd consecutive drain) - (CN) PBoC sets yuan mid point at 6.1451 v 6.1485 prior setting (strongest Yuan setting since Mar 26th)

***Equities*** US markets: - CHS: Considering going private; Held talks with several PE firms in recent weeks; May get valuation premium of about 30% - FT; +12.0% afterhours - ONNN: ON Semiconductor to acquire Aptina Imaging (private) for $400M in cash; immediately accretive; +1.8% afterhours - FDX: INCREASES DIVIDEND 33% TO $0.20 FROM $0.15 - TWX: Said to be in discussions to take a large stake in Vice Media; deal seen at around $2.2B - financial press - EBAY: PayPal unit chief David Marcus stepping down to move to Facebook; PayPal on track to meet 2015 guidance; -1.2% afterhours - DNDN: John H. Johnson to Step Down as Chairman, President and CEO, effective August 15, 2014; -5.1% afterhours

Notable movers by sector: - Consumer Discretionary: Shenzhen Techand Ecology & Environment 300197.CN +1.4% (awarded contract); Reject Shop TRS.AU -11.2% (lowers guidance); Pacific Brands PBG.AU -6.7% (lowers guidance) - Financials: Mitsubishi UFJ Financial Group 8306.JP +1.7% (analyst action); Greentown China 3900.HK -0.4% (May sales results); Agile Property 3383.HK +0.3% (May sales results) - Materials: Northern Star Resources NST.AU +3.1% (May production results) - Energy: Wintime Energy 600157.CN +5.6% (to acquire China Huaying Petroleum) - Healthcare: Nippon Kayaku 4272.JP +2.0% (analyst action); Ramsay Health Care Limited RHC.AU -2.7% (announces acquisition)

>>> US Close Dow+0,11% S&P+0,10% Nasdaq+0,31%

Closing Market Summary: Small-Caps Lead Market Higher

The stock market finished the Monday session on a modestly higher note, but the S&P 500 (+0.1%) could not keep pace with the Russell 2000 (+0.9%). Similar to the Russell 2000, the Nasdaq (+0.3%) displayed relative strength, while the Dow Jones Industrial Average (+0.1%) settled just ahead of the S&P 500.

Equity indices climbed out of the gate with the early sentiment boosted by a set of acquisitions in three influential sectors; however, the intraday strength did not last as participants opted to take some money off the table after the Dow Jones Transportation Average surrendered its morning gain after outpacing the broader market over the past few weeks.

The largest S&P 500 sector received early support from chipmakers after Hittite Microwave (HITT 77.87, +17.31) agreed to be acquired by Analog Devices (ADI 55.31, +2.62) for $78/share. Shares of HITT surged 28.6%, but the PHLX Semiconductor Index narrowed its gain to 0.2% by the close.

Meanwhile, the broader tech sector (+0.3%) also slipped into the close, but was able to eke out a modest gain with help from its largest component. Apple (AAPL 93.70, +1.48) rose 1.6% on its first day of trading after the recent 7:1 share split.

Outside of technology, the remaining cyclical sectors saw a mixed finish. Consumer discretionary and energy settled in line with the S&P 500, materials (-0.3%) lagged, while financials (+0.4%), and industrials (+0.5%) outperformed.

The industrial sector finished ahead of the broader market, but the strength among defense contractors (PHLX Defense Index +0.8%) masked the underperformance of transport stocks. The Dow Jones Transportation Average was up as much as 0.6% in the late morning, but could not hold its gain into the close, ending flat. It is worth mentioning that today's underperformance took place after the bellwether complex surged nearly 8.5% since the start of the quarter versus a 4.2% gain for the S&P 500 over the same period.

While most cyclical sectors finished in line with or ahead of the broader market, the same could not be said for the four defensive groups. The telecom services sector tacked on 0.1%, while consumer staples (-0.1%), health care (-0.5%), and utilities (-0.7%) settled in the red.

Consumer staples spent the bulk of the session in negative territory, but shares of Hillshire Brands (HSH 62.06, +3.14) jumped 5.3% after Tyson Foods (TSN 37.50, -2.62) confirmed its offer to acquire the company for $63/share.

Also of note, the health care sector diverged from biotechnology, with the latter receiving a boost from Merck's (MRK 57.94, +0.09) offer to acquire Idenix Pharmaceuticals (IDIX 23.79, +16.56) for $24.50/share, which represents a gargantuan premium of 239% to Friday's closing price. Meanwhile, the iShares Nasdaq Biotechnology ETF (IBB 248.03, +1.94) advanced 0.8%.

On the fixed income side, Treasuries slumped overnight, but reclaimed a portion of their losses during the session. Ultimately, the 10-yr note shed five ticks, pushing its yield higher by two basis points to 2.61%.

Light participation continued to plague the market at the start of the week with only 595 million shares changing hands at the NYSE.

Tomorrow, the Wholesale Inventories report for April (consensus 0.3%) and the April Job Openings and Labor Turnover Survey will both be released at 10:00 ET.

S&P 500 +5.6% YTD  Nasdaq Composite +3.8% YTD  Dow Jones Industrial Average +2.2% YTD  Russell 2000 +1.0% YTD