Gapping down
In reaction to disappointing earnings/guidance:
- CTB -10.1%, MPC -5.2%, USCR -2.7%
M&A news:
- S -12.5% (Sprint & T-Mobile (TMUS) reach agreement to merge in all-stock transaction), TMUS -1.1%
Other news:
- SIEN -7.5% (commences an underwritten public follow-on $75 mln common stock offering)
- DB -1.2% (continued weakness)
- SHLD -0.6% (provides update on previously reported data security incident)
- WBT -0.5% (files mixed securities shelf offering)
Analyst comments:
- CL -0.8% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
- JBLU -1.2% (downgraded to Neutral from Overweight at JP Morgan)
- W -2.4% (downgraded to Neutral from Outperform at Wedbush)
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Gapping up
In reaction to strong earnings/guidance:
- DCT +12.1%, JMEI +10.5%, FDC +7.7%, WPP +7.2%, CRON +4.4%, MPLX +3.4%, KMPR +2.9%, AGN +2.4%, EPD +2%, MOH +1.6%, L +1.1%, CUBI +1.1%, ARLP +0.9%, BWP +0.5%
M&A news:
- STDY +77.4% (UTHR to acquire SteadyMed (STDY) for $4.46/share in cash at closing)
- ANDV +16.8% (to be acquired by Marathon Petroleum (MPC) in a $23.3 bln deal)
- DCT +12.1% (to be acquired by Prologis (PLD) for $8.4 bln in a stock-for-stock transaction)
- ILG +5.4% (to be acquired by Marriott Vacations Worldwide (VAC) for approximately $4.7 bln in cash/stock)
- BIDU +0.7% (to divest its financial service business)
Other news:
- PSTI +12.9% (FDA has cleared the IND application for its PLX-R18 cell therapy in the treatment of acute radiation syndrome)
- AMZN +0.6% (slightly rebounding in pre-mkt)
Analyst comments:
- SAVE +3.6% (upgraded to Overweight at JP Morgan)
- WETF +3.3% (upgraded to Outperform from Mkt Perform at Keefe Bruyette)
- TTWO +2.4% (upgraded to Outperform from Neutral at Wedbush)
- SPOT +2% (initiated with a Buy at Goldman; initiated with a Overweight at JP Morgan)
- MO +1.1% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
- VTR +0.8% (upgraded to Market Perform from Underperform at BMO Capital Markets)
- WFC +0.6% (upgraded to Outperform from Neutral at Macquarie)
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Early pre marketGapping up:
- DCT +16.6%, JMEI +9.3%, FDC +4.7%, MPLX +3.4%, TS +3%, VEDL +2.6%, MOH +2.6%, SSL +2.1%, CHK +2%, EPD +1.9%, TSM +1.4%, BBL +1.4%, ERIC +1.1%, CUK +1.1%, AKS +1.1%, BHP +1.1%, NOK +1%, AU +0.9%, JD +0.8%, AMZN +0.7%, BWP +0.5%
Gapping down:
- S -12.2%, SHLD -3.5%, JCP -3.2%, GNC -3%, USCR -2.7%, TMUS -2.4%, MPC -1.3%, DB -1.2%, JBLU -1.2%, STM -0.9%, BP -0.9%, TEVA -0.5%
Asda-Sainsbury merger review demanded by UK's shadow business secretary over monopoly concerns
Asda’s proposed merger with rival supermarket chain J Sainsbury [LON:SBRY] should be scrutinised by the Competition and Markets Authority (CMA) on an urgent basis, the UK’s shadow business secretary Rebecca Long-Bailey has urged. FT.com reported that Long-Bailey is anxious about the impact the deal may have on suppliers as she said it threatens to create a monopoly.
Customers of the supermarkets will also suffer as prices increase and employees may be fearful of store closures and redundancies if the deal proceeds without “adequate” scrutiny and oversight, Long-Bailey said.
The CMA is thought likely to demand a merged Asda-Sainsbury group dispose of a significant number of shops to protect competition in the sector, the item reported.
Asda is owned by the US retailer Walmart [NYSE:WMT].
Link to original source
ML
SAINSBURY – SAINSBURY, ASDA AGREE MERGER TERMS, VALUING ASDA @GBP7.3B(300)+10%
IRV - Results look more or less in line with no change to Oct update(111).+3/5%
WPP – Flat organic sales growth in Q1 better than expectations c-1% (1200)+3/5%
DEUTSCHE TELEKOM – T-Mobile US to buy Sprint for USD26.5bn in stock (15)....+3%
RIB – STILL SEES FY REV. EU117M TO EU127M; FY EBITDA EU33M TO EU43M (21.1)..+2%
ACCOR – Acquires Movenpick Hotels & Resorts for 560M CHF (46)...............u/c
AIR FRANCE – KLM Head says that Air France strike “disastrous”, Les Echos(8)u/c
DBK – Said to plan Postbank integration by end of May: Handelsblatt (11.5)..u/c
NORDEX – CFO sees German market demand growing afain in 2020: BZ (9.5)......u/c
TIT – Say report on CEO Genish ready to quit is misleading (0.82)...........u/c
SEBA SS – 1Q NET INCOME SEK4.0B, EST4.24B; CET1 RATIO 19%, EST18.9% (85.5)..-1%CS
Accor +0.5% AccorHotels signs agreement with Mövenpick Holding
Amer Sports +1% Acquired Peak Performance AB, approx. EUR 255m
Eurofins +2% Acquires Covance Food Solutions for $670m
GVC M/P CS INITIATE with NEUTRAL (Near term risks)
Luxottica -0.5-1% Q1 sales light, Net sales 1% miss, confirms outlook
Miners M/P Copper +0.40%, Brent -0.55%, Iron Ore closed, China closed
Mondi M/P Agreement to acquire 100% NPP
Morrison -3% Following news Sainsbury and Asda to merge
Oils UNCH The US rig count increased by 8 to 1021. Brent -55bps
Sabadell -1% Software glitch keeps TSB online users stranded
Sainsbury +7-10% Agrees terms with Asda to merge
SEB -2% Pre-tax profit 4% below cons, CET1 10bp beat
Tesco -3-4% Following news Sainsbury and Asda to merge
WPP +1-2% LFL revs up 0.8%, outlook unchanged
Marathon Petroleum to Buy Andeavor for More Than $20 Billion
Deal values Andeavor at about $150 a share in stock and cash
Marathon Petroleum Corp. MPC -1.81% plans to buy pipeline and refining company Andeavor ANDV -2.21% for more than $20 billion, according to people familiar with the matter.
The cash-and-stock deal, which values Andeavor at about $150 a share, is expected to be announced Monday. That would be a roughly 23% premium over Andeavor’s closing price Friday after the stock surged about 50% in the past year.
Marathon, based in Findlay, Ohio, is the second-largest refiner in the U.S., according to its website. Marathon-branded gasoline is sold in 20 states, and its Speedway unit owns the nation’s second-largest convenience-store chain. It also owns a midstream master limited partnership with about 11,000 miles of crude oil and light-product pipelines.
Andeavor, based in San Antonio and formerly known as Tesoro, operates 10 refineries in the western U.S. with total capacity of more than 1.2 million barrels a day. Part of the rationale of the deal centers on the companies’ complementary footprints; with Marathon in the East and Andeavor in the West, regulatory approval could be easier to win.
The deal is expected to produce $1 billion of synergies, people familiar with the matter said.
Marathon Chief Executive Gary Heminger is expected to run the combined company, with a senior role for his counterpart at Andeavor, Gregory Goff.
Utilities and energy merger activity has surged this year as oil prices recover. There have been about $164.5 billion of deals year-to-date, more than double the comparable figure last year, according to Dealogic.