Morning Commentary: Mylan in focus on M&A news; Macquarie in trade; GT Advanced shares slump

By Rebecca Melvin

New York, July 14 – U.S. convertibles traded quietly early Monday. Mylan Inc.’s convertibles hit the Trace tape after the generic drugmaker said it would buy Abbott Laboratories’ specialty and branded generics business outside the United States for about $5.3 billion in stock.

Mylan’s 3.75% convertibles due 2015 changed hands at 397, according to Trace. Shares of the Canonsburg, Pa.-based generic drugs maker were up about 2% at $51.50. The deep in-the-money Mylan convertibles were expected to trade up or down in line with shares.

Macquarie Infrastructure Co. LLC’s 2.875% convertibles remained one of the “best traders,” a New York-based trader said, changing hands little changed at 106. The investment-grade issue has been a focus of trade since its debut Thursday.

Citrix Systems Inc. was also in action in follow-on trade from Friday and as shares of the Fort Lauderdale, Fla.-based cloud computing company gained about 0.9%.

But GT Advanced Technologies Inc.’s 3% convertibles due 2020 shed 7 points on an outright basis to 149.6, according to Trace data, as shares fell 5% after Asia’s CLSA investment bank cautioned that the company’s 2014 guidance may be at risk but maintained an outperform rating on shares and an $18.50 price target.

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