Market Roundup (PSYS, MHP, MCO, KCI, C, ZION, RF, HBAN, BCS)

Psychiatric Solutions (NASDAQ: PSYS) is said to be in talks to be acquired by Bain Capital, with the mental health facilities operator seeking a 25% premium. Although the talks are in an advanced stage, they could still fall apart. If all goes well, the deal is likely within a week.

Connecticut has followed in Ohio's footsteps and filed a lawsuit against Moody's (NYSE: MCO) and S&P (NYSE: MHP). Connecticut is alleging that the rating agencies knew that the ratings assigned to the state were false.

Kinetic Concepts (NYSE: KCI) has won its patent case against Smith & Nephew. The federal jury hearing the case found that a product used for treating severe wounds infringed upon KCI’s technology.

As rumored earlier, Citigroup (NYSE: C) has launched a sale of $2 billion worth of 30-year trust preferred securities (TRUPs) in an effort to rebuild its capital after repaying TARP funds. The sale of TRUPs would be indicative of the market sentiment. The market expects the sale to be oversubscribed heavily by institutional and retail investors, and generate a yield of up to 8.875%.

Regional banks are zooming up today. While Zions Bancorp (NASDAQ: ZION) and Regions Financial (NYSE: RF) have both added 4.9% each, Huntington Bancshares (NASDAQ: HBAN) has moved up 2.8%. The reason for this sudden surge is Barclays (NYSE: BCS), which is looking around for US retail assets.

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