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A roundup of some of the North American equities making moves in both directions today

On the decline

Business software company OpenText Corp. (OTEX-T) lost 7.6 per cent after announcing it has acquired XMedius, a Montreal-based provider of secure file exchange and communication, in a cash deal worth $75-million.

In a research note, Raymond James analyst Steven Li said: “This acquisition brings with it decades of experience and patented technology in secure and collaborative communication to help organizations move more workloads to the cloud. In addition, the acquisition further strengthens OTEX leadership in secure information exchange, unified communications and digital fax. XMedius solutions will complement OTEX’s Customer Experience Management (CEM) and Business Network (BN) platforms.”

Shares of Boeing Co. (BA-N) dropped 13.3 per cent on Monday after the planemaker’s proposal to leave wiring bundles in place on the grounded 737 MAX failed to get the backing of U.S. aviation regulators, potentially delaying the plane’s return to service.

Boeing shares fell as low as US$$224.37 in early trading, a level not seen since 2017.

The Federal Aviation Administration (FAA) told Boeing on Friday it did not agree with the planemaker’s argument that the wiring bundles meet safety standards and now it is up to Boeing to decide how to proceed.

Boeing in February said it did not believe it was required to separate or move wiring bundles on its grounded 737 MAX jetliner that regulators had warned could cause a short circuit on the 737 MAX, and lead to a crash if pilots did not react soon.

Ensign Energy Services Inc. (ESI-T) fell 49.7 per cent after it reported fourth-quarter revenue of $375.8-million versus $346.2-million a year ago.

Analysts were expecting revenue of $387-million. Its net loss was $71.6-million or 44 cents per share versus income of $154.8-million or 98 cents a year earlier.

Funds flow from operations were $54.8-million or 33 cents per share versus $68.8-million or 41 cents a year earlier.

Twitter Inc. (TWTR-N) was 3 per cent lower after announcing a deal with Elliott Management and private equity firm Silver Lake on Monday, handing both board seats after a month in which activist investors were said to be pushing for the removal of Chief Executive Officer Jack Dorsey.

Under the deal, Silver Lake will invest US$1-billion, which the microblogging platform will use to fund a US$2-billion repurchase program, Twitter said.

UK-based insurance broker Aon Plc (AON-N) was 16.7 per cent lower after it said on Monday it would buy Willis Towers Watson (WLTW-Q) for nearly US$30-billion in an all-stock deal that creates the world’s largest insurance broker and adds scale in a battle with falling margins.

The deal unifies the sector’s second and third largest names into a company worth US$76-billion by current share prices, overtaking market leader Marsh & McLennan (MMC-N), as they face challenges ranging from the coronavirus to climate change.

First mooted a year ago, the deal also comes after a period of brutal competition which has seen insurance premiums fall while claims continue to grow.

Aon confirmed last year that it was in early stage talks with Willis Towers before quickly scrapping the plans, without giving a reason.

Shares of Willis Towers were 7.5 per cent lower, while Marsh & McLennan was down 5.6 per cent.

Brazilian miner Vale S.A. (VALE-N) was down 17.2 per cent after saying it is monitoring its Gongo Soco mine in Barao dos Cocais as an embankment at the facility continues to erode, according to a securities filing on Monday.

Vale said it is watching for any impact the erosion could have on the Sul Superior mining waste dam about 1.5 km (0.9 miles) from the embankment, having raised the emergency level at the dam last year after heavy rainfall eroded the structure’s reservoir.

Bristol Myers Squibb Co. (BMY-N) lost 4.3 per cent after saying on Monday its combination therapy for multiple myeloma did not meet the main goal of showing an improvement in progression-free survival in newly diagnosed patients.

The trial tested a combination of the company’s Empliciti, Celgene Corp’s Revlimid and a corticosteroid dexamethasone, against the combination of Revlimid and dexamethasone in a late-stage study.

Bristol-Myers gained access to Revlimid through its US$74-billion buyout of Celgene last year.

With files from staff and wires

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