Merger aids Millennium Stock. Reuters reports that Lyondell Chemical Company will purchase Millennium Chemicals Inc. "for $1 billion in stock, creating the No. 3 North American chemicals producer as the industry appears poised to rebound from a five-year downturn." The merger is the result of a failed merger, Equistar Chemicals LP. Lyondell will assume about $1.3 billion of Millennium net debt.

"Millennium has undergone its share of problems, including a suspension of its dividends, job cuts, a restatement of results stemming from accounting errors and noncompliance with some of its financial covenants.

With news of debt relief, and hopes of accounting errors in their past, stockholders are investing with hopes of future cash flows and dividends.