- IDC sold to private equity firms. Private equity firms Silver Lake and Warburg Pincus are buying Interactive Data Corp. (IDC), a financial market-data provider, for $3.4B total. The deal represents a 33% premium over IDC's closing price on Jan. 14, the last day before a strategic review of the company's options was announced. The deal is also one of the largest leveraged buyouts since the credit crisis began. U.K. publisher Pearson (PSO) will receive around $2B for its 61% controlling stake in IDC.
- Lihir Gold gets a new owner. Australia's Newcrest Mining (NCMGY.PK) reached a deal to buy New Guinea-based Lihir Gold (LIHR) in a sweetened A$9.2B ($8.5B) bid. Lihir, which had rejected two previous bids, will be allowed to "continue existing discussions with third parties" until June 8. The cash-and-stock acquisition will create the world's fifth-largest gold producer, and will give Newcrest mines in Papua New Guinea, Australia and Africa, while raising sales by more than half. Since the bulk of Lihir's operations are in Papua New Guinea, the purchase may also give Newcrest some breathing room from Australia's newly announced tax on the mining of Australian assets. In afterhours trading, LIHR +6.1%.
- Simon bids for all of GGP. Simon Property Group (SPG) has reportedly made a $5.8B bid to buy General Growth Properties (GGP) in its entirety, even as GGP rejected Simon's bid for a minority stake in favor of an investment from Brookfield Asset Management (BAM). Simon's bid for all of GGP is now up to $18.25/share, said sources, more than double the $9/share it initially offered. GGP said it will "continue to consider competitive proposals and expects to select its plan for emergence from bankruptcy in early July."
- Avis pursues Dollar Thrifty. Shares of Dollar Thrifty Automotive Group (DTG) soared yesterday after Avis Budget Group (CAR) said it intends to make a "substantially higher offer" for Dollar Thrifty than the $41/share offer that Hertz Global (HTZ) announced the week before. Avis has expressed interest in Dollar Thrifty several times in the past, and said it should have been given the opportunity to submit a bid when Hertz did. In yesterday's trading: DTG +15.25%, CAR -0.3%, HTZ -6%.
- Goldman Sachs shares lawsuit info. Goldman Sachs (GS) made the rare move of disclosing details of several lawsuits it's facing following the SEC's civil fraud charges. The lawsuits accuse the firm and its executives of "breach of fiduciary duty, corporate waste, abuse of control, mismanagement and unjust enrichment ... and challenging the accuracy and completeness of GS Inc.'s disclosure". Goldman has been accused of being too secretive regarding legal proceedings against the firm. Premarket: GS -0.9% (7:00 ET). (Shareholder complaints included in Goldman's filing: I, II, III, IV, V, VI)
- Apple faces antitrust scrutiny. The Department of Justice and Federal Trade Commission are reportedly negotiating a decision as to which agency will open an antitrust inquiry into Apple's (AAPL) software development policy. Apple is requiring software developers who create apps for the iPhone and iPad to use Apple's programming tools exclusively. Also yesterday, Apple announced that it had sold 1M iPads in the first 28 days since the tablet device was launched. By comparison, the iPhone took 74 days to reach the same milestone when it was first launched. Premarket: AAPL -0.5% (7:00 ET).
- BP still fighting oil spill. BP (BP) indicated that it was making some progress in stemming the oil leak in the Gulf of Mexico. Crews in Louisiana had finished building the first of three gigantic steel and concrete containment domes that will be lowered over the three leaks on the ocean floor. The company will begin the process of transporting and lowering the dome today. Meanwhile, the Minerals Management Service, the federal agency in charge of regulating the offshore oil-and-gas industry, is coming under attack; lawmakers plan to hold hearings as to whether MMS pushed for the necessary regulations to ensure safe offshore operation.
- Auto sales up from '09, down from March. Nearly 1M vehicles were sold in the U.S. last month, slightly below expectations but still a 19.8% increase over the year-earlier period. The increase also came as overall spending on cash-back rebates and other incentives declined. On a seasonally adjusted basis, the annual sales rate dropped to 11.2M in April from 11.78M in March. Here are the highlights:
Toyota (TM): +24.4% to 157,439 vehicles.
Chrysler (FIATY.PK): +25% to 95,703 vehicles, best Y/Y gain in nearly five years.
Ford (F): +24.7% to 167,542 vehicles, a fifth straight month of 20%-plus increases.
General Motors (GMGMQ.PK): +6.4% to 183,997 vehicles.
- UBS sees profit bounce. UBS (UBS) reported the highest quarterly profit in almost three years, with net income of 2.2B Swiss francs ($2B) in the first quarter vs. a 1.98B franc loss the year before. The profit was partly from increased revenue at the debt trading unit, the division that had been responsible for most of the bank's writedowns and losses during the credit crisis. UBS said it's "well positioned" to meet its goal of annual pretax earnings of 15B francs in three to five years. Premarket: UBS -3.2% (7:00 ET).
- Aussie rate hike. The Reserve Bank of Australia raised its benchmark interest rate to 4.5%, the sixth increase since October. Governor Glenn Stevens said the rate hike will bring borrowing rates back to "around average levels."
- GMAC turns profit, changes name. GMAC reported its first quarterly profit yesterday since 2008, on gains from asset sales and lower loss reserves. For Q1, the company made a profit of $162M vs. a loss of $675M the year before. Revenue rose 6.8% to $1.86B. GMAC also said that it will be changing its name to Ally Financial Inc. as of May 10; the company renamed its bank Ally Bank nearly a year ago and said the Ally brand is gaining momentum.
Earnings: Tuesday Before Open
- Baker Hughes (BHI): Q1 EPS of $0.41 beats by $0.03. Revenue of $2.5B (-4.8%) vs. $2.5B. (PR)
- Cognizant Technology Solutions (CTSH): Q1 EPS of $0.53 beats by $0.05. Revenue of $959M (+28.7%) vs. $939M. (PR)
- Macerich (MAC): Q1 EPS of $0.66 misses by $0.01. Revenue of $182M (-13.6%) vs. $175M. (PR)
- Merck (MRK): Q1 EPS of $0.83 beats by $0.08. Revenue of $11.4B (+6.9%) vs. $11.1B. (PR)
- NiSource (NI): Q1 EPS of $0.72 beats by $0.04. Revenue of $2.1B (-15.5%) vs. $2.2B. (PR)
- NYSE Euronext (NYX): Q1 EPS of $0.54 in-line. Revenue of $645M (+6.6%) vs. $653M. (PR)
- Spectra Energy (SE): Q1 EPS of $0.53 beats by $0.06. Revenue of $1.55B (+6.9%) in-line. (PR)
- Suncor Energy (SU): Q1 EPS of $0.18 may not be comparable to consensus of $0.13. (PR)
- Teva Pharmaceutical Industries (TEVA): Q1 EPS of $0.91 beats by $0.02. Revenue of $3.7B (+16.1%) in-line. Shares +0.5% premarket. (PR)
Earnings: Monday After Close
- Anadarko (APC): Q1 EPS of $0.81 beats by $0.39. Revenue of $3.1B (+74.8%) vs. $2.7B. Shares -0.8% AH. (PR)
- Avis Budget (CAR): Q1 EPS of -$0.13 beats by $0.13. Revenue of $1.15B (-3.4%) vs. $1.16B. Shares -0.6% AH. (PR)
- Biomed Realty Trust (BMR): Q1 EPS of $0.33 beats by $0.02. Revenue of $92.7M (-1.3%) vs. $88.8M. (PR)
- Comstock Resources (CRK): Q1 EPS of $0.16 beats by $0.06. Revenue of $106M (+55.1%) vs. $112M. (PR)
- EOG Resources (EOG): Q1 EPS of $0.46 misses by $0.05. Revenue of $1.4B (+18.3%) vs. $1.2B. Shares -1.7% AH. (PR)
- Forest Oil (FST): Q1 EPS of $0.42 misses by $0.05. Revenue of $222M (+13.9%) vs. $227M. Shares +0.9% AH. (PR)
- Health Care REIT (HCN): Q1 EPS of $0.75 beats by $0.02. Revenue of $152.8M (+10.1%) vs. $149.2M. (PR)
- Hologic (HOLX): Q2 EPS of $0.29 in-line. Revenue of $418M (+4%) vs. $413M. Shares -0.8% AH. (PR)
- McKesson (MCK): Q4 EPS of $1.26 misses by $0.03. Revenue of $26.6B (+1.6%) vs. $27.4B. Shares +3.5% AH. (PR)
- Pitney Bowes (PBI): Q1 EPS of $0.55 beats by $0.01. Revenue of $1.3B (-2.3%) vs. $1.4B. Shares -3.8% AH. (PR)
- Principal Financial Group (PFG): Q1 EPS of $0.79 beats by $0.11. Revenue of $2.3B (+3.2%) vs. $2.4B. (PR)
- Qiagen (QGEN): Q1 EPS of $0.20 beats by $0.01. Revenue of $264.4M (+19.7%) vs. $260.3M. (PR)
- Rackspace (RAX): Q1 EPS of $0.07 in-line. Revenue of $178.8M (+23.3%) vs. $177.7M. Shares -3.1% AH. (PR)
- Texas Roadhouse (TXRH): Q1 EPS of $0.27 beats by $0.04. Revenue of $259.6M (+5.5%) vs. $253.4M. Shares -5.1% AH. (PR)
- UDR Inc. (UDR): Q1 EPS of $0.28 beats by $0.01. Revenue of $151.6M (+0.7%) vs. $148.8M. (PR)
- Vulcan Materials Company (VMC): Q1 EPS of -$0.35 in-line. Revenue of $493M (-17.8%) vs. $500M. (PR)
- Yamana Gold (AUY): Q1 EPS of $0.10 misses by $0.01. Revenue of $346M (+62.1%) vs. $349M. Shares -0.8% AH. (PR)
- In Asia, Japan closed. Hong Kong -0.2% to 20763. China -1.2% to 2835. India -1.4% to 17137.
- In Europe, at midday, London -1.0%. Paris -1.4%. Frankfurt -0.8%.
- Futures: Dow -0.4%. S&P -0.5%. Crude -1.3% to $85.04. Gold +0.3% to $1187.20.
Tuesday's Economic Calendar
- 7:45 ICSC Retail Store Sales
8:55 Redbook Chain Store Sales
10:00 Factory Orders
10:00 Pending Home Sales
10:00 Geithner: Proposed Bank Fee
5:00 PM ABC Consumer Confidence Index
- Notable earnings before Tuesday's open: ADM, AMT, ARM, BHI, BYD, COCO, CTSH, CVS, DPZ, DUK, EMR, FE, HNT, MA, MAC, MMC, MRK, MRO, NI, NYX, PFE, RDC, RDN, SE, SIRI, SNH, SRE, SU, TAP, TEVA, THC, VNO
- Notable earnings after Tuesday's close: ACAS, ATML, BRE, CEPH, CHK, DRH, ESLR, HLS, IDTI, IPI, KGC, MYGN, PXD, SBAC, TE, TIE, UNM, XCO, XL
Seeking Alpha editors Eli Hoffmann and Jason Aycock contributed to this post.
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