Cooper Industries (NYSE:CBE) Shares Enjoy Upper Movement on Acquisition by Eaton (NYSE:ETN)- CBE, ETN, UTX, JNJ, DHR, GE

  on May 22,2012 Posted in Investment Ideas
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Eaton Corporation (NYSE:ETN) disclosed on Monday that it has decided to acquire Cooper Industries plc (NYSE:CBE) PLC in a cash-and-stock contract worth at around $11.46 billion that is designed to increase its reach in the global electrical power and distribution industry.

The contract declared on Monday would create a firm that manufactures products for a wide range of electrical uses, from power grids and lighting to electrical, hydraulic and transmission systems for vehicles, the aerospace industry and the military.

The new firm, probable to be called Eaton Global Corp. PLC, will be incorporated in Ireland and headed by Eaton Chairman and CEO Alexander Cutler. The agreement needs the authorization of shareholders of both firms and the Irish High Court. It is anticipated to close in the second half of the year.

Turning towards the sector Eaton Corporation (NYSE:ETN) lost -0.73%, United Technologies Corporation (NYSE:UTX) rose +1.82%, Johnson & Johnson (NYSE:JNJ) moved up +0.19%, Danaher Corporation (NYSE:DHR) increased +2.15%, General Electric Company (NYSE:GE) which also edged up +0.90% and 3M Co (NYSE:MMM) advanced +1.14%.

Cooper Industries plc (NYSE:CBE) stock’s trade at beginning with a price of $70.55 and throughout the trading session climbed at a high of $71.37 other than when day-trade ended the stock finally advanced 25.14% to $69.88.

Shares price of CBE moved up from its 20 days moving average with 14.75% and remote positively from 50 days moving average with 12.82%. CBE current year earnings per share experienced an addition with 3.94% while its current quarter performance remained 16.18%.

CBE had a trade volume of 25.73 million shares was higher as compared to average trading capacity of 799,271.00 shares.
CBE last month stock price volatility remained 2.03%. In its share capital CBE has 159.07 million outstanding shares among them 158.60 million shares have been floated in market exchange. CBE stock institutional ownership remained 85.30% while insider ownership included 0.45%.

The stock is ahead its 52 week low with 73.67% and going forward from its 52 week high price with 8.16%. Company’s beta coefficient included 1.52. Beta factors measures the amount of market risk associated with market trade.



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