Wednesday, January 16, 2013

Leap Wireless International, Bazaarvoice Are Active Stocks

Share in Leap Wireless International rose the most in five months after an analyst commented that the chances were high that MetroPCS Communications and T-Mobile USA ay make a bid for the company after completing their merger.

Guggenheim Securities analyst, Shing Yin said that such a deal made sense. Leap share rose 9.6 percent to $6.88 at the close of trading. The share prices have lost 28 percent of their value so far in 2012.

In November last year there had been reports of Leap holding talks with MetroPCS and the prospects of a 3-way with Deutsche  Telekom's T-Mobile division. T-Mobile and MetroPCS had earlier announced their intention to merge.

“Leap’s complementary spectrum assets, the potential for significant synergies and a straightforward integration process that likely would not disrupt initiatives already under way,” Yin wrote in a client note.

The U.S. Justice Department on Thursday alleged that Bazaarvoice had not sought anti-trust clearance before acquiring its main rival PowerReviews Inc.

The Department fled lawsuit challenging the acquisition and also sought certain divestitures by Bazaarvoice, saying that the deal reduced competition for product ratings platforms.

Shares in Bazaarvoice fell nearly 16 percent on news of the lawsuit. The company had acquired PowerReviews for $168.2 million.

Both Bazaarvoice and PowerReviews hep companies with their advertisement strategies on social media platforms and also tries to control or limit the damages to their reputations from adverse reviews or comments.

PowerReviews helped online retailers set up customer review sections on their websites so that they could compete with Amazon.com.

The Justice Department, in its lawsuit asked the court to review the acquisition, which has already been completed, and to make Bazaarvoice divest certain assets so that competition is not stifled.

The divested assets could be used to create a new company that would replace PowerReviews.

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