Frederic Poses

Div

Rating on Trane (TT) was cut from Equal-weight to Underweight, Morgan Stanley sald. $45 price target. IR purchase could run ito challenges, given the small premium.

Hold - Price 46.55 on Jan. 2
by Sterne, Agee

Target: 47.20. We're downgrading TT from Buy to Hold based on valuation after Ingersoll-Rand announced Dec. 17 that it will acquire Trane for $36.50 a share in cash and 0.23 shares of IR, for a current effective price around $47.20. We have no changes in our EPS forecasts, but have lowered our target to $47.20 from $47.50 previously, to reflect the modest decline in the acquisition price since the transaction was announced. We don't anticipate a higher offer for Trane to emerge and...expect the deal to close in late 1Q08 or early 2Q08. Market-cap: $8.8 billion.

Cramer: Ingersoll Rand Deal Makes Trane a Buy
The $10 billion deal creates great synergy, says Jim Cramer.

Click here to watch the video.

M&A Can't Overcome the Malaise
Shares did amid some sizeable deals as traders fret about last week's inflation news and this week's coming earnings.

Click here to watch the video.

Warren Buffet report