Morning Commentary: Yahoo!, Host Hotels see some action; Chiquita flat on merger agreement

By Rebecca Melvin

New York, Oct. 27 – Convertibles were quiet early Monday as equities slipped in the early going, New York-based traders said.

The market “looks like the day before Thanksgiving,” one trader said.

He noted that Yahoo! Inc. and Host Hotels & Resorts Inc. were seen in trade. The Yahoo! 0% convertibles due 2016 changed hands at 106.4, which was up nearly a point, according to Trace data, with the underlying shares up 83 cents, or 1.8%, $44.32.

Host Hotels’ 2.5% convertibles due 2029 traded at 174.94, which was essentially unchanged, with the shares of the Bethesda, Md.-based lodging company up fractionally.

Chiquita Brands International Inc.’s 4.25% convertibles were seen little changed around 100 Monday after news that the Charlotte, N.C.-based fruit distributor has agreed to be acquired by the Cutrale-Safra Group for about $742 million, or $14.50 per share.

The merger agreement comes after news last week that Chiquita shareholders voted against a planned link up with Fyffes plc. The Chiquita convertibles did not trade on Friday but were called 99.875 bid, 100.375 offered last.

Twitter Inc.’s 0.25% convertibles due 2019 changed hands at 97.56, which was unchanged, with shares toggling the flat line. The San Francisco-based social media company was expected to post quarterly earnings after the market close.

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