LG Chem to acquire AVEO Oncology for $566 million

Yahoo Finance anchor Brad Smith breaks down how markets are trading, plus why AVEO stock is soaring today.

Video transcript

[AUDIO LOGO]

BRIAN SOZZI: Brad, over to you.

BRAD SMITH: Ah, my favorite wedding song to dance to and get on the dance floor is the "Electric Slide." All right, well, we're seeing a little bit of a positive movement here continue to hold early in trade on the day. The Dow Jones Industrial average, DJIA or DJI, you're seeing that up by about 1.8%. NASDAQ composite still holding. That's up by about 2% right now, 209 points to the upside there. S&P 500, you're also seeing that hold at about 1.9%.

So much of the positive activity that you're seeing around the world here also continuing to protrude into today's market activity. And over the past two days here early in the trading week or at least for the first two days, you're seeing that hold for the S&P 500 over the two-day period up by about 4.6%.

Also want to take a look at some of the trending tickers here on the day that we've been tracking as well because there is a major tie up, at least in the pharma-- pharmaceutical space, excuse me, where you've got AVEO Pharmaceuticals that's actually being acquired by LG Chem. You've got shares of AVEO moving higher by 40% here on the day in reaction to that.

Some details of the deal, we do know that it's going to be acquired in equity value of about $566 million on a fully diluted basis. And it represents a 43% premium to AVEO's closing share price as of October 17. So that move being priced here in today, and early in trade still holding on to some healthy gains this morning.