Verizon Communications (VZ: chart) announced Monday it agreed to acquire Rural Cellular Cop. (RCCC: chart) in a deal worth $2.7 billion, or $45 a share. The transaction represents a premium of $13.19, or 41% over Rural Cellular''s Friday close of $31.81 a share. Rural Cellular surged 17.5% in pre-market trading.

Verizon Communications also reported positive Q2 2007 financial and operational results on higher margins and rising revenue in its wireless, broadband, data, video and global IP markets. Verizon earned of $1.7 billion, or 58 cents, much higher than 43 cents in last-year same period.


7:30AM New York, 8:30 PM Tokyo, 5:00PM Mumbai – Asian markets rebound led by a surge in Shanghai.

Asian markets staged a broad recovery on earnings and gains in steel stocks in Japan and financial services companies in China.

CSI 300 Index in Shanghai increased 2.2% to record close at 4,440.76 leading all markets in the region. South Korea followed with a rise of 1.25%, Singapore with an increase 0.96%, and Hong Kong added 0.75%. However smaller markets fell led by 2.33% decline in Thailand and 1.5% in Philippines. Taiwan lost 0.9% after leading the recent declines in Asia last week.

China Life increased 3.3% after the company indicated that first half profit is likely to double on higher premiums and gains in stock market.

HSBC reported its earnings after the close in Hong Kong. The bank earnings gained to $10.9 billion from $8.7 billon or earnings per share increased to 94 cents from 77 cents a year ago. The revenue in the period jumped 23% to $42.1 billion. The company increased its reserves to cover losses arising from subprime loans in the U.S. by 63% to $6.4 billion. HSBC closed nearly unchanged in Hong Kong trading ahead of the release but added 2.4% in London mid-day trading.

Seoul based Doosan Infracore announced its acquisition of construction vehicle division from U.S. based Ingersoll-Rand Co. for $4.9 billion. The largest foreign investment from South Korea, Bobcat division of Ingersoll rand was expected to fetch much less according to the Wall Street Journal. Bobcat generated $2.6 billion in sales in the year 2006. The Korean conglomerate has recently been expanding its construction and services business.


6:30AM New York, 7:30 PM Tokyo – Steel stocks lift bearish mood in Tokyo trading.

Election win of the upper house in Japan election and worries related to volatility in riskier bonds dominated market opening in Tokyo. The index in the first 2 hours of trading fell nearly 1.5% but recovered later in the afternoon trading. Better than expected results from the steel companies helped the index to recover most of the losses and close 5.5 to 17,289.30.

Liberal Democratic Party lost its control of the upper house to Democratic Party on voters concerns that the Prime Minister Abe is disconnected with the voters concerns. The fall out of mismanagement of the pension account records, contradictory statements from now resigned Defense Minister added to the voters’ nervousness. Prime Minister Abe has vowed not to resign in the wake of his party’s loss but his legislative agenda will have to change now that he has lost control of one of the two houses.

JFE Holdings reported net income jumped 63% on revenue gain of 14.4% to 791 billion yen. The company reported net income of 89.5 billion yen at the end of the first quarter as of June 30th. The company raised its forecast for the interim dividend per share to 70 yen from 50 yen. The company also revised up the annual revenue forecast by 8.6% and net income by 6.8% for the fiscal year ending March 2008.

Nippon Steel reported first quarter revenue jump of 18.3% and earnings gain of 16%. The revenues in the quarter were recorded at 1.1 trillion yen and earnings at 86.7 billion yen. Earnings per share in the quarter rose to 13.7 yen from 11.26 yen from a year ago.

According to the company press release inventory to shipment ratio in the industry rose at the end of May to 108.5% from 106.8%.

Mitsubishi Electric reported first quarter earnings gain of 87% to 46.5 billion yen on net revenue gain of 6% to 872.7 billion. Home Appliance segment reported revenue rise of 15% to 238 billion yen and operating earnings of 18.5 billion. Energy and Electric systems revenue jumped 17% to 195.4 billion and operating earnings of 13.3 billion yen. Industrial automation division revenue increased 4% to 239.7 billion and operating income 37.8 billion yen. Earnings per share jumped to 21 yen from 11 yen a year ago.

The company raised forecast for the first half of the fiscal year ending in March 2008 to 1.9 trillion yen from 1.85 trillion yen and net income by 42% to 80 billion yen from 57 billion yen.

The stock traded to a record level on the news with a gain of 10% to 1,265.

The worries related consumer spending in the U.S. hurt the export driven stock after a week of turmoil in the market. Canon closed 2.6% lower at 6,340 and Sony lost 1.1% to close at 6,350 yen. Seiko Epson plummeted 11% to 3,410 yen on broker downgrade.