NEW YORK (Thomson Financial) - The Internet sector fell Monday before paring
its losses, as Microsoft Corp.'s withdrawal of its buyout bid for Yahoo Inc.,
cast a pall on the group.
The Internet Holdrs ETF (HHH) shed 4% to $55.77, with 8 of its 12 components
trading lower. The Internet sector tracking stock was down as much as 6.8% at
the intraday low of $54.16, which was the lowest price seen since March 20.
Yahoo Inc.'s stock, the second-largest component within the HHH as of
Friday's closing prices, slumped 16% to $24.16, paring losses of as much as 20%
seen earlier in the session.
Microsoft said over the weekend that it was pulling its bid for the company
because, "despite out best efforts, including raising our bid by roughly $5
billion, Yahoo has not moved toward accepting out offer."
Yahoo's shares were still above the Jan. 31 close of $19.18, the day before
Microsoft originally announced its bid to buy Yahoo for $44.6 billion, or $31 a
share.
EBay Inc., the most-heavily weighted HHH component, slipped 0.2% to $31.05,
and Amazon.com, the third most-heavily weighted member, eased 0.6% to $76.85.
Among other more-active HHH components, Time Warner Inc., which owns AOL,
tacked on 0.9% to $15.91, E-Trade Financial shed 1.4% to $4.15, TD Ameritrade
gained 1.2% to $19.24 and McAfee Inc. lost 0.7% to $34.02.
Tomi Kilgore
tk1
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|