| NEW YORK, April 26
NEW YORK, April 26 Midcap and smallcap stocks
were little changed on Monday, as investors cheered some M&A
deals but were cautious about others such as a $1.6 billion
acquisition by Charles River Laboratories Inc (CRL.N).
Midcap clinical research company Charles River plunged 13.6
percent to $34.36 after it agreed to buy Chinese rival WuXi
PharmaTech WX.N for $21.25 per American Depositary Share in
cash and stock in part to increase its presence in China. There
were concerns about the U.S. company's ability to carry out
such a big deal. For details, see [ID:nSGE63P04G]
WuXi PharmaTech shares surged $17.4 percent to $19.46.
Fellow midcap Equinix Inc (EQIX.O) jumped 6.9 percent to
$102.30 after Switch and Data Facilities Co Inc SDXC.O said
it was notified the U.S. Department of Justice had closed its
investigation into the merger between the two, which is now
expected to close on April 30. [ID:nWNAB1585]
"A lot of these companies are still carrying abnormal
levels of cash, combined with reasonable balance sheets and the
current state of affairs of interest rates, you just have a
great environment for M&A," said Robert Maltbie, managing
director at Singular Research in Calabasas, California.
"And it's just going to keep continuing, strategic-wise."
Both the S&P MidCap 400 index .MID and the S&P SmallCap
600 index .SML shed 0.1 percent. The benchmark S&P 500 .SPX
also dipped 0.1 percent.
Smallcap PrivateBancorp Inc (PVTB.O) plummeted 15.1 percent
to $14.50, after the Chicago-based lender reported a
wider-than-expected loss in the first quarter, as worsening
commercial real estate loans forced the company to quadruple
its provisioning. [ID:nSGE63P0N3]
But United Fire & Casualty Co (UFCS.O) climbed 16 percent
to $22.62 after posting first-quarter earnings that topped
market expectations. [ID:nWNAB1793]
(Reporting by Chuck Mikolajczak; Editing by Andrew Hay)