Dade Behring, a producer of diagnostic goods and services, traded up to 99-100 this week from the 98 1/2 level last week upon speculation by traders that a restructuring plan is in the works. Traders said a restructuring plan had been released but declined to comment on its contents. Dealers speculate that collaterlaized loan obligation managers and other institutional players are among the buyers. Sellers could not be determined.
Last week, $80 million of Dade Behring traded as high as 99 before the unloading caused the price to drop. Deutsche Bank was rumored to have been in the trade, although the bank would not confirm. One trader explained that as the name crept closer to par, impatient dealers, not wanting to wait for their last penny, sold the name and collected profits. The defensive nature of the health care industry pushed up Dade Behring's levels to 89-90 from the 85-86 range in an auction in mid-November. At that time Deutsche reportedly bought a $5 million piece. The $1.25 billion bank deal is led by Deutsche Bank, Morgan Stanley, Goldman Sachs, and Credit Suisse First Boston (LMW, 11/01).