>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: ASX +0.8% (ticking higher).

M&A news: IDIX +236.5% (to be acquired by Merck (MRK) for $24.50 per share in cash), HITT +29% (to be acquired by Analog Devices (ADI) for $78 per share in cash), HSH +4.9% (Tyson Foods (TSN) confirms binding offer to acquire all outstanding shares of HSH for $63/share).

Select metals/mining stocks trading higher: GG +1.5%, GOLD +0.7%, SLV +0.7%, MT +0.7%, EOG +0.6%, BHP +0.4%.

Other news: ACHN +38.5% (IDIX peer), FDO +13.2% (Carl Icahn discloses 9.4% active stake in FDO; intends to have conversations with mgmt), CGIX +5.5% (announces partnership with AZN to provide biomarker & molecular based testing), RDNT +5.3% (announced that it has joined with WellMatch to collaborate and help launch a new online service for its imaging centers), SQNM +5.1% (announces third national coverage agreement for prenatal diagnostic testing servides), BDSI +4% (received FDA approval for BUNAVAIL Buccal Film for the maintenance treatment of opioid dependence), ODP +3.8% (positive Barrons mention), PF +3.3% (related to HSH/TSN news), GBLX +3.1% (secured special use permit for medical marijuana establishment in Clark County, Nevada), OREX+2.8% (Biotech peer), ARIA +2.4% (IDIX peers), BKS +1.5% (headlines over the weekend that BKS & AVGO's LSI have ended Nook related lawsuits), TEVA +1.1% (FDA approves expanded label for AZILECT for treatment across all stages of parkinson's disease), MTOR +1% (Sandell Asett Mgmt discloses 5.1% stake in 13D ), HK +0.9% (provides an operational update in the Tuscaloosa Marine Shale; announced the signing of a definitive agreement with credit funds and accounts).

Analyst comments: DG +8.7% (mentioned positively at BofA/Merill related to positive developments with Coupon.com (COUP) and upgraded to Buy from Hold at Jefferies), ARCO +5.1% (upgraded to Buy from Underperform at BofA/Merrill), BMRN +1.4% (upgraded to Outperform from Neutral at Credit Suisse), WETF +1.1% (upgraded to Overweight from Equal-Weight at Morgan Stanley)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance/SSS: CNSI -5.8%, FGP -0.4%, MCD -0.2%.

M&A news: TSN -1.5% (confirms $63 per share bid for HSH), MRK -0.8% (announces acquisition IDIX).

Other news: NSR -6.3% (confirms update on Local Number Portability Administrator Selection Process, award to go to ERIC unit), AVGO -5% (headlines over the weekend that BKS & AVGO's LSI have ended Nook related lawsuits), CRUS -2.3% (still checking), GILD -1.7% (potentially related to MRK acquistion of IDIX), RTN -0.7% (cautious Barrons mention), ACHC -0.6% (light volume, announces commencement of consent solicitation related to its 12.875% senior notes due 2018), CANF -0.5% (provides an update on its clinical developments and strategic plans).

Analyst comments: MPEL -2.7% (Cautious note on Macau at Deutsche Bank), LVS -1.9% (Cautious note on Macau at Deutsche Bank), WYNN -1.9% (Cautious note on Macau at Deutsche Bank), TOT -0.6% (downgraded downgraded to Hold from Buy at Cannacrod Genuity), ZEN -1.3% (initiated with a Neutral at Goldman, a Equal-Weight at Morgan Stanley, Neutral at CS).

>>> LULU is reporting on the 12th of June.

ululemon athletica: Topeka out positve ahead of earnings Thursday morning

Topeka notes that with renewed focus on product and supply chain, and a new senior team in place, they believe LULU can reclaim its spot as a standout concept in specialty retailing, given its focus on the still underserved women's athletic market, its premium product, lifestyle orientation and high growth potential. Expectations are low, along with a new low in the stock price, so they think LULU needs only to meet conservative expectations, maintain its rather conservative guidance and delineate its progress in product and supply chain initiatives to see a rebound this week.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: FDO +12.5%, DG +6.7%, HSH +5.8%, BDSI +4%, OREX +3.8%, JD +1.7%, GLUU +1.4%, ARMH +1.2%, MT +1.1%, BHP +1%, GOLD +0.7%, BIIB +0.6%, SLV +0.6%, LPSN +0.5%, AMZN +0.4%

Gapping down: ACRX -3.7%, YNDX -2.3%, PLUG -1.1%, TSN -0.9%, BIOF -0.9%, LVS -0.8%, SAN -0.8%, VRX -0.7%

>>> Idenix Pharmaceuticals Inc To be acquired by Merck for $24.50/shr, total dea


Idenix Pharmaceuticals Inc To be acquired by Merck for $24.50/shr, total deal valued at $3.9 billion

Merck has entered into a definitive agreement under which Merck will acquire Idenix for $24.50 per share in cash. The transaction, which values the purchase of Idenix at approximately $3.85 billion, has been approved by the boards of directors of both companies. 

Idenix has established a promising portfolio of hepatitis C candidates based on its expertise in nucleoside/nucleotide chemistry and prodrug technologies, said Dr. Roger Perlmutter, president, Merck Research Laboratories. Idenixs investigational hepatitis C candidates complement our promising therapies in development and will help advance our work to develop a highly effective, once-daily, all oral, ribavirin-free, pan-genotypic regimen that has a duration of treatment as short as possible for millions of patients in need around the world. 

Idenix is a biopharmaceutical company engaged in the discovery and development of medicines for the treatment of human viral diseases, whose primary focus is on the development of next-generation oral antiviral therapeutics to treat hepatitis C virus (HCV) infection. The company currently has three HCV drug candidates in clinical development: two nucleotide prodrugs (IDX21437 and IDX21459) and a NS5A inhibitor (samatasvir). These novel candidates are being evaluated for their potential inclusion in the development of all oral, pan-genotypic fixed-dose combination regimens.

>>> Hillshire Brands Tyson confirms deal for HSH at $63/shr in cash valued at $8


Hillshire Brands Tyson confirms deal for HSH at $63/shr in cash valued at $8.55B; as speculated earlier

- The all-cash transaction is valued at approximately $8.55 billion, including Hillshire Brands' outstanding net debt, and represents a multiple of 16.7x trailing 12 months adjusted EBITDA or 10.5x including $300 million in synergies. 

Tyson anticipates the substantial cash flow from the combined companies will enable it to rapidly pay down debt. 
- Tyson would expect to realize annual synergies in excess of $300 million driven primarily by operational efficiencies, purchasing, distribution, supply chain efficiencies, upgrading raw materials and through the combination of the two companies' talented sales and marketing teams and alignment of shared service functions. Synergies are expected in the first full fiscal year with the total synergies to be realized by the end of year three. 
- Tyson's pork processing operations would benefit from stable and consistent demand for its raw materials for use in Hillshire Brands' branded, value-added products. 
- Tyson expects that the proposed transaction would be marginally accretive to EPS on a cash basis in the first full fiscal year after completion and substantially accretive thereafter.

NY Post : Beats World Cup marketing subdued after Olympic snafu

See video {} made R/GA from interpublic Group

Dr. Dre’s Beats Entertainment has decided against a guerrilla marketing campaign around Brazil’s upcoming World Cup, The Post has learned.
Despite launching a new video ad starring Brazil’s Neymar da Silva and other soccer stars, Beats won’t be flooding the World Cup’s locker rooms with its fashionable headgear the way it did at the London Olympics, a source close to Beats told The Post.
“Call it lesson learned,” the source said.
Beats created a stir in 2012 when it doled out specialized headsets (gold for the US basketball team and Union Jack prints for the British athletes, etc) to athletes converging in London for the Olympic Games.
The International Olympic Committee stopped short of taking action despite rules against “ambush marketing” tactics. But the move forced a committee spokesman to remind athletes of “the importance of protecting our sponsors.”