(Reuters) - Marriott Vacations Worldwide Corp (VAC.N), a U.S. provider of vacation timeshare properties, is advanced discussions to merge with peer ILG Inc (ILG.O), according to people familiar with the matter.
The deal would bring together two of the biggest vacation ownership companies, with brands including Marriott, Ritz-Carlton, Westin, Hyatt and Sheraton. The combined company would have more scale to compete other hotel-branded rivals, including Hilton Grand Vacations Inc (HGV.N) and Bluegreen Vacations Corp (BXG.N).
The exact merger structure that Marriott Vacations and ILG are negotiating could not be learned.
The sources asked not to be identified because the negotiations are confidential. Marriott Vacations and ILG did not immediately respond to requests for comment.
ILG also explored a merger with Apollo Global Management LLC’s (APO.N) Diamond Resorts International Inc, sources said last month. Talks between ILG and Diamond Resorts have now ended, according to the sources.
Trump to give drug pricing speech later this month
President Trump is set to give a speech on prescription drug prices on April 26, Axios has learned, though the date could change. The speech will coincide with a rollout of a request for information (RFI) from the Department of Health and Human Services on different drug price policy ideas, according to Deputy White House Press Secretary Hogan Gidley. Trump will also talk about drug price proposals included in the president's budget.
Why it matters: This was a major campaign issue for Trump — and the White House has been accused of not taking action on the issue. It's a concern for both Republicans and Democrats and action is likely to be popular with voters. However, it's worth noting that the request for information isn't a concrete policy change and it is unclear what will be in it.
Gapping down
In reaction to disappointing earnings/guidance:
- HCSG -1.7%, (guidance), JBHT -1.3%
Other news:
- CLDX -45.6% (reports that the randomized Phase 2b METRIC Study of glembatumumab vedotin compared to Xeloda in patients with metastatic triple-negative breast cancers that overexpress gpNMB failed to meet its primary endpoint)
- WPP -4.8% (announces Sir Martin Sorrell has stepped down as Chief Executive Officer of WPP with immediate effect)
- BPMC -3.5% (reports proof-of-concept data for highly selective RET Inhibitor BLU-667)
- NLNK -3.4% (reports initial data from Phase 1 NLG2105 study )
- CLVS -3.4% (commences separate underwritten public offerings of convertible senior notes and common stock)
- JMEI -2.5% (CFO Yunsheng Zheng resigned effective April 11 for personal reasons)
- HTHT -2.4% (reports blended occupancy rate of 83.7% versus 83.9% last year; reports Q1 blended RevPar of RMB 173 mln versus RMB 152 mln)
- BUD -0.5% (negative article from Barrons)
Analyst comments:
- KHC -1.2% (downgraded to Underperform from Neutral at Credit Suisse)
- CROX -2.7% (downgraded to Negative from Neutral at Susquehanna)
- SJM -1.1% (downgraded to Underperform from Neutral at Credit Suisse)
- DF -1% (downgraded to Sell from Neutral at Goldman)
Gapping up
In reaction to strong earnings/guidance:
- BAC +1.0%
M&A news:
- ERI +7.3% (to acquire Tropicana Entertainment (TPCA) in a cash transaction that is valued at $1.85 bln)
- IEP +1.7% (confirms agreement to sell Tropicana's real estate to Gaming and Leisure Properties)
Other news:
- ALKS +18.7% (announces that the FDA has accepted for review the NDA for ALKS 5461)
- ACRX +8.9% (announced the successful completion of the human factors (HF) study performed to validate the effectiveness of the revised DSUVIA directions for use)
- IDRA +4.3% (enters into a clinical development support agreement with Pillar Partners Foundation)
- ALNY +3.6% (presents new clinical results for Givosiran)
- INFY +2.9% (rebounding following Friday's post earnings decline)
- SHPG +2.5% (announces sale of oncology business to Servier for $2.4 bln)
- JD +0.8% (clarifies potential confusion caused by certain statements made by CEO Richard Qiangdong Liu in a recent event)
- GOOG +0.6% (positive article from Barrons), .
Analyst comments:
- ULTA +2.3% (upgraded to Buy from Neutral at Guggenheim)
- BCS +2% (upgraded to Buy from Hold at Jefferies)
- COST +1.2% (upgraded to Outperform from Market Perform at Wells Fargo)
- AWK +0.7% (upgraded to Buy from Neutral at Janney)
Early premarket gappersGapping up:
- ARQL +21.9%, INFY +3.1%, SHPG +2.9%, YNDX +2%, BCS +2%, ASML +1.5%, SAN +1.5%, ABB +1%
Gapping down:
- WPP -5.9%, SBGL -3.5%, NLNK -3.4%, JMEI -2.9%, CROX -2.4%, ZG -2.4%, ORC -1.8%, AU -1.7%, IPWR -1.4%, MCC -1.2%, GE -0.5%
Ghosn: All options 'open' on Nissan-Renault capital structure
Revamped cross shareholdings would likely result in closer integration of carmakers
Shire sells oncology unit to France’s Servier for $2.4bn
Oncology is a key draw for Takeda, which has been considering a bid for Shire
Shire has struck a deal to sell its oncology business for $2.4bn in cash to a French pharmaceutical group, complicating the position with Japan’s Takeda Pharmaceutical which said last month that it was considering a bid for the Irish drugmaker.
Oncology was one of the key areas identified by Takeda as driving the rationale for a tie-up between the Japanese group and the FTSE 100 company. Takeda said a deal between the two would help strengthen its core therapeutic areas of oncology, gastronenterology and neuroscience, as well as adding Shire’s rare disease franchise to the package.
Since then no offer for Shire has been forthcoming, but Takeda has just over a week to make its intentions clear, either by making a firm offer for the company or by downing pens for six months.
News of the potential takeover bid sent the London-listed drugmaker’s shares surging at the end of March; since then they have held relatively steady between £36 and £37 a share. Monday’s announcement sent Shire’s shares 1.6 per cent higher at £36.63.
Cash raised by the oncology business sale to Servier would help “increase optionality”, Shire said on Monday. But it added that “after the current offer period regarding Takeda’s possible offer for Shire concludes”, it would consider returning the proceeds of the sale to shareholders through a buyback.
Shire said its board of directors started exploring the sale of its oncology business in December, before kicking off the sale process in January. That process had “identified multiple strategic buyers across the US, Europe and Japan,” it said.