Circuit City (CC) shares are surging nearly 40% as Blockbuster (BBI) offered to purchase the retailer for $6 per share, a 54% premium of Friday`s closing price. Airtran (AAI) shareholders are also profiting after Raymond James upgraded the airline to outperform.

Wachovia (WB) is down sharply this morning, after the 5th largest US bank announced that it will slash its dividend and raise $7 bln in capital. Carpenter Technology Corp. (CRS) is also struggling after a disappointing earnings report.

Position(s):N/A