RICHARDSON-VICKS TAKEOVER RUMORS FUEL FRENZIED TRADING, PUSHES STOCK UP
Rich-Vicks (up 3-3/8 to 40) was the biggest point gainer on the "F-D-C" Index during the week ended Sept. 6, after rumors emerged on the "Street" late last week concerning a buyout of the company -- by either American Cyanamid or Unilever. Despite Cyanamid's denial that it had made an offer, Rich-Vicks stock was traded heavily, with volume reaching nearly 675,000 shares on Friday. The company refused to comment on the unusual activity. Investors reacted favorably to Avon's (up 2-1/8 to 24) announcement that it would sell its Mallinckrodt unit and use the proceeds, which could amount to $500 mil., to buy back up to 25% of its outstanding common stock (see related story). Syntex (up 2-1/2 to 63) showed a strong northward move after the company announced that its fourth quarter earnings leaped 65%. Overall, health-related issues did not fare well, as the Composite dropped a little more than a point over the week, compared to a similar rise for the Dow average, which finished at 1335. Losers out numbered gainers on the lndex 30 to 18, with three issues remaining unchanged. Chain stocks were the biggest component losers, with only two of 10 companies showing gains. American Stores (down 2 to 56-1/8) declined after announcing flat second quarter earnings. Chart omitted.
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