U.S. Hot Stocks: Hot Stocks to Watch

Among the companies with shares expected to actively trade in Monday's session are TW Telecom Inc. (TWTC), Fusion-io Inc. (FIO) and Affymax Inc. (AFFY) .

Level 3 Communications Inc. (LVLT) agreed to buy business Ethernet provider TW Telecom Inc. for about $5.7 billion in cash and stock, a deal that would expand Level 3's metropolitan footprint. The deal values TW Telecom at $40.86 a share, a 12% premium to Friday's close. TW Telecom shares rose 12% to $40.60 premarket. Level 3 shares rose 1.6% to $44.80.

SanDisk Corp. (SNDK) agreed to acquire Fusion-io Inc. (FIO) in an all-cash deal that values the data-storage company at about $1.21 billion. Net of cash assumed, the deal is valued at $1.1 billion. The flash-memory maker is offering $11.25 a share, a 21% premium to Friday's closing price. Fusion-io shares rose 25% to $11.60 premarket.

Affymax Inc. (AFFY) and Takeda Pharmaceutical Co. Ltd. (TKPYY) said they will end their anemia drug Omontys partnership in September and withdraw an application with the U.S. Food and Drug Administration. The companies had recalled the drug, which was used in kidney dialysis patients, in February 2013 following reports of serious hypersensitivity reaction including anaphylaxis, a life-threatening allergic reaction. Affymax shares fell 11% to 57 cents premarket.

International Game Technology (IGT) said on Monday that the company's board and management are currently exploring strategic options for the casino-game maker. Shares rose 12 cents to $15.98 premarket.

Drilling-services company Layne Christensen Co. (LAYN) said Monday that it is taking steps to cut costs, including reviewing underperforming assets and operations, in an effort to improve its operating results. Shares fell 13% to $13 premarket.

Yandex NV (YNDX) on Monday said it agreed to buy Russian online auto-classified company Auto.ru for about $175 million in cash. Auto.ru operates the largest and most detailed classifieds catalog for new and used cars in Russia, said Alexey Tretyakov, Yandex vice president of commerce. Shares fell 1.6% to $33.18 premarket.

Zynga Inc. (ZNGA) said Friday it received a notice from Nasdaq saying it wasn't in compliance with its listing rules after two directors recently left the videogame company's board. Nasdaq listing rules require that the company's board be comprised of a majority of independent directors, Zynga said in a regulatory filing. Shares fell 2.3% to $3.03 premarket.

 
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AON PLC's (AON) Aon Affinity business has agreed to buy flood-insurance provider StoneRiver National Flood Services Inc. from StoneRiver Group LP. Financial terms weren't disclosed.

Discover Financial Services (DFS) agreed to enhance its procedures for preventing money laundering under a pact with the Federal Deposit Insurance Corp., the credit-card lender said Friday.

Federal Signal Corp. (FSS) said it intends to appeal a Latvian court ruling against the company's Bronto Skylift unit in a dispute related to a 2008 sale of three Bronto units.

Hill-Rom Holdings Inc. (HRC) agreed to buy TRUMPF Medical for $250 million in cash, a deal that would give the company a stronger foothold outside of North America and double its surgical portfolio.

Safeway Inc. (SWY) said it has entered a preliminary settlement of a shareholders suit related to the pending $9.4 billion takeover of the supermarket operator by Cerberus Capital Management LP. The memorandum of understanding includes provisions for Safeway to move ahead the planned expiration date of its shareholder rights plans by roughly three months to Thursday.

Write to Maria Armental at [e-mail] and Tess.Stynes at [e-mail]

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