Wednesday, January 28, 2015
- The European Commission clears Mylan's (MYL -0.1%) $5.3B acquisition of Abbott's (ABT +0.7%) non-U.S. Developed Markets Specialty and Branded Generics Business. The EC is concerned that the transaction would potentially reduce competition so its approval is contingent upon the divestment of some of Mylan's businesses in Germany, the U.K., France, Ireland and Italy.
11:35 AM| Comment!
- More Chinese investment in Hollywood as Hunan TV & Broadcast agrees with Lions Gate (NYSE:LGF) to invest a combined $1.5B into making and distributing films.
- The deal covers the next three years and means that Hunan will set up a unit in the U.S., and Lions Gate will also help distribute Hunan's Chinese films in overseas markets.
- China's Dalian Wanda -- already one of the biggest theater operators in the U.S. -- was reportedly in talks to buy a stake in Lions Gate.
- Shareholders with Reynolds American (RAI +1.5%) have approved an issuance of shares in connection with the company's acquisition of Lorillard (LO +0.8%).
- The merger is still subject to regulatory approval.
- The company expects a closing in the first half of 2015.
- Reynolds American merger update (.pdf)
- Founded in 1988 and based in NYC, Ryan Labs Asset Management specializes in liability driven investing and total return fixed income strategies, and has about $5.1B in AUM. Sun Life's (NYSE:SLF) purchase of the company is expected to close this quarter.
- Sun Life started its third-party business in Canada last year, and this purchase will extend its footprint in the U.S.
- Source: Press Release
- Shares of Graphic Packaging Holding (NYSE:GPK) are on watch after Vertical Research Partners identifies the stock as a likely target of International Paper (NYSE:IP).
- Analysts in the sector think the merger between Rock-Tenn and MeadWestvaco will push more paper producers into a consolidation mode.
- GPK is already up 4.8% for the week.
- CommScope (NASDAQ:COMM) agrees to acquire TE Connectivity's (NYSE:TEL) telecom, enterprise and wireless businesses for $3B, in an attempt to diversify its operations and broaden its geographic reach.
- COMM says it expects more than $150M in annual savings starting in the third year after the deal closes.
- TEL says the sale will allow it to focus on connectivity and sensor markets, particularly harsh environment applications; the deal does not include TEL's subsea communications or data communications businesses.
- TEL says it will use proceeds from the sale for stock buybacks, as well as acquisitions and other investments; its board authorizes a $3B expansion of its share buyback program.
- Earlier: TE Connectivity beats by $0.08, misses on revenue
- TEL +3.6%, COMM +2.1% premarket.
- It's BGC Partners' (NASDAQ:BGCP) serve and the company doesn't disappoint, responding to Michael Gooch's open letter to shareholders with one of its own.
- "In a final desperate attempt to protect their conflicted and self-interested transaction, GFI (NYSE:GFIG) management is asking you to accept $5.85 per share in cash and stock, which is $0.25 less than BGC's $6.10 all-cash offer."
- "Time is short," says BGC chief Howard Lutnick, urging GFI shareholders to vote against the merger with CME Group. The special meeting - originally set for yesterday - is due to take place on Friday.
- Source: Press Release
- Previously: Head of GFI Group writes open letter urging acceptance of CME bid (Jan. 27)
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