Diamonds and Dogs

10/1/12

Molson Coors Brewing Co. (TAP)

Molson Coors investors are going to want a cold one after shares dropped 4.95% to $42.82. The beer brewing company saw its shares drop after announcing that it would combine its European businesses into a single unit. The Denver-based company said Molson Coors Europe will combine its U.K. and Ireland business with its recently acquired businesses in Central Europe. Molson Coors spokesman Colin Wheeler said the company was not yet ready to say whether the consolidation would result in any layoffs. Investors are weary of the change and shares are showing some negative views regarding the merger. The bad news is the stock closed down $2.23 today; the good news is its 5 o'clock somewhere.

Ceradyne Inc. (CRDN)

Ceradyne is one of the largest gainers today, up 43.14% at $34.97. The company saw its shares pop after news was released that 3M would purchase Ceradyne. 3M agreed to buy Ceradyne for $860 million or $35.00 per share, or a 43% premium to last Friday's closing price. The deal will close by the end of the year and allow 3M to expand into ceramics used in energy, aerospace and defense industries. Nick Heymann, an analyst with William Blair & Co. said, "For 3M, this is basically a way to participate in one of the highest growth materials segment across the broadest swath of industries." Ceradyne investors are going to be happy with nearly a 50% gain today.

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