Morning commentary: LinkedIn jumps on acquisition news; Iconix 1.5% convertible adds on exchange

By Rebecca Melvin

New York, June 13 – LinkedIn Corp.’s convertibles jumped in very active trade early Monday on news that Microsoft Corp. has agreed to buy the professional-oriented social media site for about $26.2 billion, or $196 per share, which represents a 50% premium to LinkedIn’s closing share price on Friday.

LinkedIn’s 0.5% convertibles due 2019 were last quoted at 99.5, according to a New York-based trader. That was up about 5 points from where the bond traded on Friday at about 93.875 and 94.

LinkedIn shares surged nearly 50% to as high as $194.38 early Monday, and they were last higher by $61.60, or 47%, at $192.70.

Also trading actively on Monday was Iconix Brand Group Inc.’s 1.5% convertibles due 2018 after the New York-based owner, licenser and marketer of consumer brands agreed to exchange $104.95 million of the senior subordinated notes due 2018 for $35.2 million in cash and 6.8 million shares.

The Iconix 1.5% convertibles traded at 81.5, a trader said. Previously the bonds had traded with a 78 handle. Iconix shares were down 32 cents, or 4.2%, at $7.39.

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