US STOCKS-Salix jumps after terminated merger deal, upgrade

Fri Oct 3, 2014 8:18am EDT
 
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By Ryan Vlastelica

NEW YORK Oct 3 (Reuters) - Shares of Salix Pharmaceuticals Ltd were higher in premarket trading on Friday, up 3.2 percent to $156 in heavy volume.

The move came after the company said it had terminated a merger agreement with Swiss-listed Cosmo Pharmaceuticals SpA , citing a "changed political environment" related to "inversions," where a company reincorporates abroad in order to escape U.S. taxes.

Separately, Credit Suisse upgraded the stock to "neutral" from "underperform" and raised its price target to $155 from $139.

Salix has been a strong performer this year, up about 68 percent in 2014.

Futures snapshot at 0814 EDT:

* S&P 500 e-minis were up 12 points, or 0.62 percent, with 150,451 contracts changing hands.

* Nasdaq 100 e-minis were up 22 points, or 0.55 percent, in volume of 22,800 contracts.

* Dow e-minis were up 89 points, or 0.53 percent, with 20,886 contracts changing hands. (Editing by Bernadette Baum)