Cephalon, Dish Network, Ralcorp, Whole Foods: U.S. Equity Movers

Shares of the following companies had unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 4 p.m. in New York.

Alcoa Inc. (AA) rose 1.3 percent to $17.22 for the biggest gain in the Dow Jones Industrial Average. The largest U.S. aluminum producer was raised to “buy” from “neutral” at Goldman Sachs Group Inc., which also lifted it share-price estimate to $22 from $17.

Cephalon Inc. (CEPH US) gained 4 percent to $80.11, the highest price since Jan. 5. Teva Pharmaceutical Industries Ltd. (TEVA) , the world’s largest generic-drug maker, agreed to buy the biopharmaceutical company for $6.8 billion, trumping a hostile offer from Valeant Pharmaceuticals International Inc. (VRX) .

Valeant slumped 5.8 percent to $49.58. Teva climbed 3.4 percent to $47.27

Dish Network Corp. (DISH) rose 19 percent, the most since October 2008, to $29.79. The satellite television company and EchoStar Corp. (SATS) agreed to pay TiVo Inc. (TIVO) , the pioneer in the market for home DVRs, $500 million as part of an agreement to dismiss all pending litigation between the companies. Tivo rose 3 percent to $9.86.

Echostar declined 5.6 percent to $34.99, the most in the Russell 1000, after reporting first-quarter earnings of 19 cents a share. That missed the average analyst estimate of 32 cents.

Education Management Corp. (EDMC) dropped 5.2 percent to $17.58, the lowest price since Jan. 25. The U.S. Justice Department joined an employee whistleblower suit against the second-largest U.S. for-profit college operator, the company said. The suit alleges that Education Management, which is 40 percent owned by Goldman Sachs Group Inc. funds, illegally paid recruiters based on the number of students they enrolled.

Forest Laboratories Inc. (FRX) rallied 4.8 percent to $34.74 for the biggest gain in the Standard & Poor’s 500 Index. Seeking Alpha contributor Bret Jensen said the New York-based drugmaker and Gilead Sciences Inc. (GILD) may be takeover targets. Gilead rallied 4.7 percent, the most since Jan. 27, to $40.67. Frank Murdolo, vice president of investor relations for Forest, and Amy Flood, a spokeswoman for Gilead, declined to comment.

International Coal Group Inc. (ICO US) surged 31 percent to $14.43 for the biggest gain in the Russell 2000 Index. Arch Coal Inc. (ACI) said it will buy the coal miner for $14.60 a share in an all-cash transaction valued at $3.4 billion.

International Paper Co. (IP) rose 4.6 percent to $32.29, the highest price since March 2008. The world’s largest paper and pulp producer may rise to $42 during the next year as demand for packaging expands globally, Barron’s reported, citing Chip Dillon, an analyst at Credit Suisse.

Ralcorp Holdings Inc. (RAH US) climbed 8.7 percent to a record $84.60. Apollo Global Management LLC is seeking an investment in the cereal maker and plans to meet with its management to discuss options, said one person familiar with the discussions. Apollo has already made an initial approach to Ralcorp

Talecris Biotherapeutics Holdings Corp. (TLCR US) rose 3.1 percent to $28.79, the highest price since it went public in September 2009. Grifols SA (GRF) won tentative U.S. antitrust approval to buy the biopharmaceutical company for $4 billion after agreeing to sell some assets, reducing the number of major companies in the blood-plasma industry to three.

Volcom Inc. (VLCM US) surged 24 percent, the second-biggest gain in the Russell 2000, to $24.40. PPR SA, the French owner of Gucci and Puma, agreed to buy all of the clothing manufacturer for $607.5 million in cash to strengthen its lifestyle sports unit with skate- and snowboarding gear.

Whole Foods Market Inc. (WFM) tumbled 5 percent to 59.64 for the biggest drop in the S&P 500. The largest U.S. natural-goods grocer was downgraded to “hold” from “buy” by Scott A. Mushkin, an analyst at Jefferies Group Inc., who said rising prices for gasoline and other consumer purchases may reduce sales growth.

To contact the reporters on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

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