Trading Room home page

US stocks fall despite giant M&A deals

Market watch top headlines

Australian reports

World reports

Stocks to watch

FMG, AGO, BHP, RIO, JBH, HVN, WOW, WES, MYR, PMV, PDN, UGL, LEI,

NEW YORK, Feb 14 AFP

February 15 2013, 01:57AM

Two giant M&A deals, the merger of American Airlines and US Airways, and Berkshire Hathaway's takeover of ketchup maker Heinz, have failed to lift US stocks in opening trade.

Fifteen minutes into trade on Thursday, the Dow Jones Industrial Average was down 32.64 points, or 0.23 per cent, at 13,950.27.

The broad-based S&P 500 dropped 3.82 points, or 0.25 per cent, to 1,516.51.

The tech-rich Nasdaq Composite lost 9.84 points, or 0.31 per cent, to 3,187.04.

US Airways shares fell 1.9 per cent to $US14.33 after the official announcement of its long-awaited merger with American Airlines, creating the largest US carrier. American parent AMR Corp is under bankruptcy reorganisation.

Heinz shares though soared nearly 20 per cent to $US72.51 after the shock announcement that billionaire Warren Buffett's investment firm would partner with 3G Capital to buy Heinz in a deal worth $US28 billion ($A27 billion).