The proposed $2.5 billion takeover deal between Copper Tire and Rubber Company (NYSE: CTB) and India’s Apollo Tyres is in trouble. The management from both companies got involved in some heated arguments over the price issue over the weekend. After the deal received an approval from Cooper’s shareholders few days ago, some labor related issues have cropped up, which might delay the transaction. Apollo believes that sorting labor related issues at Cooper’s china facility and the U.S., result in substantial costs. Hence, the Indian tire company feels that a price cut is warranted. However, Cooper disagrees with the contention. Meanwhile, Cooper has also filed a case against Apollo in the U.S. court on Friday, urging the court to force Apollo complete the deal in a timely manner.
Category: Large Cap Growth Stocks
Time Warner Cable to acquire DukeNet Communications
Time Warner Cable Inc. (NYSE: TWC) announced on Monday that it has agreed to acquire DukeNet Communications in an all-cash deal estimated at $600 million. The deal also assumes repayments of debt. The acquisition will help Time Warner Cable to expand its internet service business for its institutional customers. Charlotte based DukeNet, is currently owned by Duke Energy (50% stake) while the remaining stake is held by Alinda Capital Partners, an investment firm, which focuses in infrastructure projects. DukeNet provides high-capacity bandwidth services to data centers, wireless carriers, and other businesses and government organizations in North Carolina and South Carolina along with five other states, located in the Southeast.
Jana Partners Reports 13.5% Stake in Outerwall
Activist investor, Jana Partners LLC unveiled through its regulatory filing on Friday that it now holds a stake of 13.5% in Outerwall Inc. (NASDAQ: OUTR), formerly known as Coinstar Inc., adding that it plans to discuss strategic options with the management, which includes a possible sale of Redbox video rental Kiosks business. Shares of Outwerwall rallied about 9.50% on Friday. Jana Partners, founded by Barry Rosenstein, said in a regulatory filing that it believes the stock is trading below its potential.
Samsung Posts Record High Q3 Operating Profit
Samsung Electronics (OTC: SSNLF), the world’s biggest smartphone manufacturer by shipments, said on Friday that it anticipates to post an operating profit of 9.9 trillion won to 10.3 trillion won ($9.2 billion to $9.6 billion) for the fiscal third quarter ended September 30. The South Korean Company posted an operating profit of 9.5 trillion in the preceding quarter. In the same quarter of the last fiscal year, Samsung had posted an operating profit of 8.06 trillion won. Sales are expected to be in the range of 58 trillion to 60 trillion won up from 52.2 trillion won in the same period of last year
Oppenheimer Downgrades Domino’s Pizza
Equity research analysts at Oppenheimer downgraded the pizza restaurant chain, Domino’s Pizza (NYSE: DPZ) to a “market-perform” from an “outperform”. Although Oppenheimer believes that operating metrics and management execution of the pizza company will continue to remain unparalleled, it foresees some headwinds like unfavorable comparable from the year-ago period and tough conditions which could restrict upside earnings potential. Overall, nine equity research analysts keep a “hold” rating while have assigned a “buy” rating. The average price target is $60.89.
Constellation Brands’ Q2 Revenue More Than Doubles
Wine and spirit company, Constellation Brands (NYSE: STZ) reported adjusted earnings of $188.7 million or 96 cents a share for the fiscal second quarter compared to a profit of $131 million or 71 cents a share, in the year earlier quarter. Analysts polled by Thomson Reuters had forecasted earnings of 88 cents a share. Revenue more than doubled to $1.46 billion from $698.50 million but fell short of analysts’ consensus estimate of $1.53 billion. Sales were bolstered by the recent acquisition of Groupo Modelo’s U.S. beer business. The Company raised its outlook for the fiscal 2014. Constellation now anticipates earnings to be in the range of $2.80 to $3.10 a share up from its earlier projection of $2.60 to $2.90 a share.
Monsanto’s Q4 Loss Widens, To Acquire
Shares of Monsanto Company (NYSE: MON) edged lower on Wednesday as the agricultural products seller’s fiscal fourth quarter loss widened. The bottom line was hurt by flat margins, and lower sales at its seeds business and genomics division. Loss per share on non-GAAP basis was higher than analysts’ expectation while revenue also fell short of analysts’ forecast. The Company also handed downbeat guidance for the fiscal year 2014. Separately, Monsanto said that it has agreed to acquire farming data analytics company Climate Corp. for nearly $930 million in cash.
Archer Daniels Midland in Final Stages of Talks with Cargill To Sale Cocoa Unit
Archer Daniels Midland Company (NYSE:ADM) is in final stages of negotiations with the world’s leading cocoa trader, Cargill Inc. to sale its coca business, reported Reuter, citing sources familiar with the matter as saying. If the deal materializes then it would create a giant in the Cocoa industry since it is dominated by two firms. Although financial details of the possible transaction were not known, analysts have valued ADM’s cocoa business unit at as much as $2 billion. The sources said that the deal is expected to be announced within few days.
Merck To Slash 8,500 Jobs Worldwide
Drug maker, Merck & Co; Inc. (NYSE: MRK) announced on Tuesday that it plans to cut 8,500 jobs as part of its bigger plan to streamline its research and development and improve its commercial focus. The Whitehouse Station, N.J; based Company expects to save nearly $2.5 billion in annual costs by the end of year 2015. By the end of 2014, the company anticipates to save $1 billion out of the total estimated savings. This is the second round of job cuts. The Company said earlier that it will cut 7,500 jobs.
Walgreen Q4 Profit Soars 86%
Walgreen Company (NYSE: WAG), the largest drug store chain in the U.S. said on Tuesday that fiscal fourth quarter earnings soared 86%. Results were boosted by its acquisition of a beauty retailer Alliance Boots. For the latest period ended Aug. 31, the Deerfield Ill; based drug store chain reported a net income of $657 million or 69 cents a share compared to a profit of $353 million or 39 cents a share. Revenue jumped 5% to $17.94 billion. On adjusted basis earnings stood at 73 cents a share. Analysts had expected earnings of 72 cents a share on revenue of $17.96 billion.