Morning Commentary: Teva mandatories gain with stock on CEO chatter; Great Plains also firms

By Stephanie N. Rotondo

Seattle, July 13 – The mandatory convertible preferred stock space was again being eyed on Thursday, though this time it was due to actual news.

Teva Pharmaceutical Industries Ltd.’s 7% mandatory convertible preferreds due 2018 (OTCBB: TEVVF), for instance, were up $10.347, or 1.799%, at $585.347 in early dealings.

The company’s stock (NYSE: TEVA) was also better, adding nearly 2.5% by mid-morning.

The gains came as it was reported that Pascal Soriot, chief executive officer of sector peer AstraZeneca, was moving to take the CEO post at Teva.

Meanwhile, Great Plains Energy Inc.’s 7% series B mandatory convertible preferreds (NYSE: GXPPrB) were also ticking up, gaining $1.87, or 3.52%, to trade at $54.87.

The Kansas City, Mo.-based company said late Wednesday that it was redeeming the issue on Aug. 17 due to the cancelling of the acquisition of Westar Energy Inc.

As such, the issue will be redeemed with a make-whole premium.

Great Plains and Westar nixed their previous takeover plans – Great Plains intended to take over Westar – late last week following regulator objections to its plan. However, the companies still opted to come together, instead offering up a merger agreement that has thus far seemed to appease both investors and regulators.

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