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Stocks rally as M&A action heats up, Criticism for AT&T's proposed mega-merger with Time Warner

It’s shaping up to be a busy Monday on Wall Street. All three major averages (^GPSC, ^DJI, ^IXIC) are sharply higher as M&A activity heats up and investors get hit with another wave of earnings.

Media mega-merger

Investors are reviewing AT&T’s (T) $107.50-a-share offer for Time Warner (TWX) in a stock-and-cash deal valued at more than $85 billion. AT&T is the nation’s second biggest wireless phone carrier and already owns Direct TV. The proposed deal with Time Warner would make AT&T the owner of Time Warner assets like CNN and HBO. The deal will face intense scrutiny from antitrust regulators and faces opposition from politicians ranging from Donald Trump to Bernie Sanders. What does it mean for consumers?

More M&A action

B/E Aerospace (BEAV) shares soared to new heights this morning after news that the aircraft interior maker is being bought by Rockwell Collins (COL) for $6.4 billion dollars. That translates to $62 a share in cash and stock while representing a premium of 22.5% based on B/E Aerospace’s closing price on Friday.

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TD Ameritrade (AMTD) is buying privately held rival Scottrade’s brokerage operations for $2.7 billion. TD bank (TD), which owns a large stake in TD Ameritrade, will purchase Scottrade’s banking business for $1.3 billion in cash. The deal will bring together two major players in the retail market for buying and selling stocks. Shares of TD bank are on the move in early trading. TD Ameritrade is the sponsor Yahoo Finance’s Market Movers program.

Genworth Financial (GNW) shares were lower in early trading. The US insurer is selling itself to Chinese investment firm China Oceanwide Holdings for $2.7 billion. Chinese companies have been making a major push overseas as China’s economy slows and the yuan weakens.

Too big to fail?

Insurance giant MetLife (MET) returns to court today to fight the US government’s decision in 2014 to label the company “too big to fail.” That label was part of the reforms instituted after the financial crisis. MetLife fought the designation, which would increase regulatory oversight. In March a judge struck down the label. Will the government’s appeal succeed?

Brexit and the cloud

Microsoft (MSFT) is boosting prices in Britain. The American tech giant plans to increase prices by up to 22% in the UK in response to the plunge in the pound following the Brexit vote in June. The move is likely to affect thousands of companies and government departments who rely on Microsoft’s cloud and software products