Top Movers in the Technology Sector in the Trailing 5-Day Period
Nomura downgraded Telefonica to “reduce”
Europe’s (FEP) Telefonica (TEF) was downgraded by Japan’s (EWJ) leading investment bank to “reduce” from “neutral.” Nomura advised investors in a research report that was released on April 5, 2016. The firm’s shares fell by 8.5% in the trailing five-day period.
On April 1, 2016, American depositary receipts of European stocks were trading lower as well. The biggest losers were oil and gas production company Eni (E), Telefonica, Statoil, and Total (TOT). They fell 3.8%, 3.7%, 3.1%, and 3%, respectively.
Brocade fell on news of the Ruckus acquisition
On April 4, 2016, Brocade (BRCD) announced that it entered into a definitive agreement to acquire Ruckus Wireless (RKUS) in a cash and stock transaction. The acquisition is expected to complement Brocade’s enterprise networking portfolio. It will add Ruckus’ high-growth wireless products to Brocade’s “market-leading” networking solutions.
The acquisition will also strengthen Brocade’s strategic presence in the broader service provider space with Ruckus’ leading position in this market. According to Brocade, the transaction is expected to be accretive to its non-GAAP (generally accepted accounting principles) revenue by fiscal 1Q17.
Under the terms of the acquisition agreement, Ruckus stockholders will receive $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus. The transaction is valued at $1.5 billion. It could fluctuate until the deal is closed.
Shares of Brocade fell 13.6% on April 4, 2016. Shares of Ruckus Wireless rose 32.4% due to the acquisition news. In the trailing five-day period, shares of Brocade fell 8.4%.
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