Merck reportedly eyeing Cubist

Cubist Pharmaceuticals Inc. (NASDAQ:CBST) surged $16.89 (23%) to $91.25 in after-hours trading Friday on rumors the infectious disease play is in talks to be acquired by Merck & Co. Inc. (NYSE:MRK). According to an online posting by The New York Times' DealBook, citing anonymous sources, the price would be about $100 per share, or about $7.5 billion.

The price would be a 34% premium to Cubist's Friday close of $74.36. ...