NEW YORK (Reuters) – U.S. stocks rose on Wednesday after estimate-beating results from technology bellwether Dell and a deal for Sanofi-Aventis to buy Genzyme for $20.1 billion in cash.
French drugmaker Sanofi-Aventis SA (SASY.PA) agreed to buy Genzyme Corp (GENZ.O) for a sweetened $74 a share as merger and acquisition activity continued to bring fresh cash into the market. Its shares rose 1.5 percent to $75.43.
Activist investor Nelson Peltz’s Trian Group offered to acquire Family Dollar Stores Inc (FDO.N) for $55 to $60 per share in cash, giving the company an implied value of $7.6 billion. Family Dollar advanced nearly 25 percent to $54.80.
«The overall climate has been buoyed by the fact that there’s credit available to do deals,» said Kevin Caron, market strategist at Stifel, Nicolaus & Co in Florham Park, New Jersey. «Private equity coffers are very full, and that money is looking to be put out and invested.»
The Dow Jones industrial average (.DJI) gained 28.76 points, or 0.24 percent, to 12,255.40. The Standard & Poor’s 500 Index (.SPX) rose 4.20 points, or 0.32 percent, to 1,332.21. The Nasdaq Composite Index (.IXIC) added 10.27 points, or 0.37 percent, to 2,814.62.
Dell Inc (DELL.O), the world’s No. 2 personal computer maker, flew past profit and margins expectations in the latest show of strength from corporate America that has helped lift stocks. Its shares jumped 7 percent at $14.88.
Trian’s bid for Family Dollar helped shares of other discount retailers. Dollar Tree Inc (DLTR.O) rose 7.6 percent to $54.83 while Dollar General Corp (DG.N) rose 13 percent to $30.58.
U.S. stocks slipped off 2-1/2-year highs on Tuesday as U.S. retail sales data cast doubts on a rebound in consumer spending, a vital part of the economic recovery.