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Norwegian oil and gas engineering companies Acergy (NASDAQ: ACGY) and Subsea 7 (PINK: SBEAF) have signed an agreement under which ACGY will acquire SBEAF for $2.5 billion in an all-stock deal. The acquisition will create a company with a $5.4 billion market capitalization. The firms, which are bracing up for more complex projects, said jointly, “the combined entity will be better able to meet the growing size and technical complexity of subsea projects, driven by the demand to access ever more remote reserves in increasingly harsh environments.” By 11:08 am, shares of ACGY rallied 9.78%, to $17.29.

Shares of Palo Alto, California-based company, Affymax Inc (NASDAQ: AFFY), are treading water on Wall Street today as data suggests that its anemia drug Hematide carries safety risks. Cardiovascular events, such as heart attacks, strokes and death are more frequent in non-dialysis patients taking Hematide, as compared to patients taking Aranesp manufactured by Amgen Inc (NASDAQ: AMGN). Wachovia’s analyst Aaron Reames said that the Food and Drug Administration (FDA) is highly concerned about the cardiovascular data. “There is a good possibility that another trial is required.” AFFY plummeted 65.41%, to $7.96, by 11:08 am today.

ITT Corporation (NYSE: ITT) is all set to buy Godwin Pumps, a closely-held company, in a deal worth $585 million. The acquisition will help ITT speedily expand its water and wastewater pumping business. The deal is likely to close in Q3 2010. By 11:20 am, shares of ITT jumped 1.2%, to $49.11.

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