ADC Telecommunications Settles Arbitration (ADCT)

Merrill Lynch has agreed to pay ADC Telecommunications (NASDAQ: ADCT) $56.5 million over the sale of auction rate securities. The company expects to receive payment before the end of its fiscal Q3 2010 on July 2. In a research report released this morning, J.P. Morgan analysts wrote that they had not anticipated any recoveries and "view today's settlement as an incremental positive."

The analysts said that the settlement improves the company's EV/EBITDA multiple to 5.2x from 5.6x. The firm reiterated their Neutral rating on the stock, however, and continue to project 2010 EPS for ADCT of $0.59. During today's session, the shares have jumped 4.53% to $7.61.