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Stock Market & Financial Investment News

News Breaks
July 28, 2014
16:32 EDTFDO, DLTR, DG, Z, TRLA, CMI, ACRXOn The Fly: Closing Wrap
Stocks on Wall Street were little changed following a session marked by two headline making M&A deals. A worse than expected pending home sales report pushed the averages to session lows about a half hour into trading, but they soon reversed and began to drift toward positive ground. By early afternoon all three of the major equity averages were in positive territory but they were unable to hold their position and finished the session mixed, with the Dow slightly higher and the Nasdaq slightly lower. ECONOMIC EVENTS: In the U.S., the pending home sales index dropped 1.1% from the prior month to 102.7 in June, compared to expectations for it to have risen 0.5%. Markit's services PMI for July came in at 61.0 in the flash reading, which was flat with the prior reading and above the 59.8 consensus forecast. COMPANY NEWS: Dollar Tree (DLTR) agreed to acquire Family Dollar (FDO) in a cash and stock transaction worth $74.50 per Family Dollar share. The transaction was called the "best path forward" for Family Dollar by Nelson Peltz's Trian Fund, which disclosed that it will vote its over 7% Family Dollar stake in favor of the buyout. Another noted investor and Family Dollar shareholder, Carl Icahn, said he was "extremely pleased" with Dollar Tree’s intention to acquire the company, but added that he continues to believe there are "a handful of potential buyers who could realize greater synergies through a combination with Family Dollar and are hopeful that one or more of them will surface." Icahn's hopes for an alternate bid may be shared by others, as evidenced by Family Dollar ending the day up $15.08, or 24.86%, at $75.74, which was above the agreed upon deal price. Dollar General (DG), which has been speculated as a logical bidder for Family Dollar, initially sunk after the deal was announced, then recovered and was higher for much of the afternoon, though the stock ended the session down 5c, or 0.09%, at $55.56. The current planned buyer, Dollar Tree, rose 65, or 1.2%, to $54.87. MAJOR MOVERS: Among the notable gainers was another company that agreed to be acquired by a peer. Trulia (TRLA) rose $8.69, or 15.42%, to $65.04 after agreeing to merge with Zillow (Z) in a $3.5B stock-for-stock transaction. Buyer Zillow, which will own about two-thirds of the newly created company upon closing, gained $1.46, or 0.92%, to $160.32 after confirming the deal that it was reported to be nearing late last week. Among the notable losers following its earnings report was Cummins (CMI), which fell $4.80, or 3.2%, to $145.35 despite reporting earnings that beat the consensus forecast and raising its FY14 revenue guidance. Also lower were shares of AcelRx (ACRX), which plunged $4.44, or 41.0%, to $6.39 and was downgraded at Canaccord after the FDA issued a Complete Response Letter for the company's Zalviso drug. INDEXES: The Dow gained 22.02, or 0.13%, to 16,982.59, the Nasdaq slipped 4.65, or 0.1%, to 4,444.91, and the S&P 500 edged up 0.57, or 0.03%, to 1,978.91.
News For FDO;DLTR;DG;Z;TRLA;CMI;ACRX From The Last 14 Days
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October 1, 2014
11:03 EDTCMIWestport tanks after cutting revenue view due to market uncertainty
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08:57 EDTTRLA, ZZillow sell-off overdone, says JMP Securities
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06:06 EDTDG, FDO, DLTRFamily Dollar says proceeding with plans to be acquired by Dollar Tree
Family Dollar (FDO) said in a memo to its employees yesterday that it is proceeding with its plan to be acquired by Dollar Tree (DLTR), even as Dollar General (DG) seeks to break up the deal and acquire Family Dollar. Family Dollar said it is not planning any changes to its health care, 401(k) and compensation plans. Family Dollar comments, "The immediate focus of our work is to prepare for ‘Day 1,’ (the first day after closing), while simultaneously beginning to build a more detailed plan for the integration. We’re now in the ‘integration planning phase,’ which involves planning for the complex blending of our two organizations."
September 30, 2014
10:43 EDTTRLATrulia signs direct licensing agreement with Edijna Realty
Trulia (TRLA) has entered into a direct license agreement with Edina Realty, a Berkshire Hathaway (BRK.A) affiliate. The agreement establishes a direct data connection to Trulia for Edina Realty. This ensures listings are accurate and up-to-date, benefiting agents and their seller clients, as well as the more than 57 million monthly unique visitors to Trulia, as of July 31, 2014.
10:20 EDTZ, TRLAZillow volatility increases, shares pullback into planned acquisition of Trulia
Zillow (Z) October weekly call option implied volatility is at 60, October is at 49, November is at 56, January is at 49; its 26-week average of 54 according to Track Data, suggesting large near term price movement into the planned acquisition of Trulia (TRLA).
08:52 EDTZ, TRLANews Corp. sees Move, Inc. deal to close in 2Q15
News Corp (NWSA) believes Move, Inc. (MOVE) is in a unique position and holds an important role for the company to expand in the digital real estate industry. Says this is the most significant acquisition the company has made since launching as a separate company last summer. Says this acquisition allows the company to stay committed to returning capital to shareholders. Says believes that Move Inc.'s strategy is different that that of Trulia (TRLA) and Zillow (Z). Says expects that the transaction will be very modestly EPS valued in the short term. News Corp continues to expect to generate positive cash flow regardless of the acquisition. Says Move, Inc. will improve and enhance the core media assets of News Corp. Comments made during a conference call discussing News Corp's acquisition of Move, Inc.
September 29, 2014
08:14 EDTDLTR, FDO, DGDollar General buying Dollar Tree 'not impossible,' says FBR Capital
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September 26, 2014
18:01 EDTDG, FDOAttorneys general investigating effects of proposed Family Dollar merger
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16:15 EDTACRXOn The Fly: Closing Wrap
Stocks on Wall Street were higher, regaining much of their losses from yesterday, after GDP data showed the U.S. economy grew at its fastest pace in more than 2 years during the second quarter. Also helping improve sentiment was the significant earnings beat from Dow member Nike (NKE). ECONOMIC EVENTS: In the U.S., second quarter real GDP growth was revised up to 4.6% in the government's third estimate. This was raised from the prior 4.2% growth estimate, though the upward revision had been expected by analysts. The final University of Michigan consumer sentiment index for September came in at 84.6, which was unchanged from the preliminary print but up from the final August reading of 82.5. COMPANY NEWS: Shares of Nike climbed $9.75, or 12.23%, to $89.50 after the company reported stronger than expected results and provided better than expected profit guidance. Following last night's report, a number of analysts reacted positively in notes this morning, including Janney Capital, which upgraded the stock to Buy from Neutral. Meanwhile, Deutsche Bank upgraded Under Armour (UA) to Buy, citing continued sector strength evidenced in Nike's results. Under Armour gained $2.27, or 3.36%, to $69.82 following the report from the industry leader and Deutsche's ratings action. MAJOR MOVERS: Among the notable gainers was Janus Capital (JNS), which surged $4.60, or 41.43%, to $15.72 after the company unexpectedly announced that "Bond King" Bill Gross, formerly of PIMCO, will join as a fund manager this Monday. Afterward, Citigroup upgraded Janus to Neutral from Sell, citing Gross' hiring. Also higher was Yahoo (YHOO), which jumped $1.71, or 4.39%, to $40.66 after activist investor Starboard Value announced it has acquired a significant ownership stake in the company and urged it to explore a strategic combination with AOL (AOL). Shares of AOL also rose $1.58, or 3.68%, to $44.55 following Starboard's public disclosure of its recommendation to Yahoo. Among the noteworthy losers was Finish Line (FINL), which was left out of the Nike-fueled rally in the sneaker sector and fell $4.30, or 14.62%, to $25.11 after the company reported second quarter earnings and revenue that missed expectations. Following Finish Line's Q2 report, the stock and peer Foot Locker (FL) were both downgraded to Neutral from Buy at Bank of America Merrill Lynch. Also lower were shares of AcelRx (ACRX), which fell $1.31, or 19.49%, to $5.41 and was downgraded to Neutral at Roth Capital after the company said it has to resubmit for FDA approval of its Zalviso drug. INDEXES: The Dow advanced 167.35, or 0.99%, to 17,113.15, the Nasdaq gained 45.45, or 1.02%, to 4,512.19, and the S&P 500 rose 16.86, or 0.86%, to 1,982.85.
12:40 EDTACRXAcelRx downgraded to Neutral from Buy at Roth Capital
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07:03 EDTACRXAcelRx provides update on resubmission of Zalviso NDA
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September 22, 2014
13:01 EDTTRLA, ZZillow volatility flat as shares pullback into planned acquisition of Trulia
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September 19, 2014
11:11 EDTCMICaterpillar sales trends for August mixed, says Wells Fargo
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September 17, 2014
17:32 EDTFDO, DGDollar General remains committed to acquisition of Family Dollar
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08:28 EDTDG, DLTR, FDOFamily Dollar board rejects Dollar General's 'illusory' tender offer
Family Dollar Stores (FDO) announced that its Board of Directors unanimously recommends that Family Dollar’s shareholders reject the unsolicited conditional tender offer made by Dollar General Corporation (DG) and not tender their shares. In conjunction with its rejection of Dollar General’s offer, Family Dollar’s Board unanimously reaffirms its recommendation in support of the transaction with Dollar Tree (DLTR). The terms of the tender offer are the same as those in the proposal made by Dollar General on September 2, 2014, which the Board of Directors of Family Dollar unanimously rejected on September 5, 2014, on the basis of antitrust regulatory considerations. Howard R. Levine, Chairman and CEO of Family Dollar, said, “Our Board of Directors, with the assistance of outside advisors and consultants, reviewed all aspects of Dollar General’s tender offer and concluded unanimously that this highly conditional Offer is illusory because, as Dollar General is well aware, the Offer cannot close on the terms proposed. Tenders into the Dollar General Offer will be meaningless since there is no way that Dollar General can purchase shares that are tendered.” Levine added, “The terms of the Dollar General Offer are no different from those in its most recent unsolicited proposal, which was previously and unanimously rejected by our Board of Directors based on antitrust regulatory considerations. There is a very real and material risk that the transaction proposed by Dollar General would fail to close, after a lengthy and disruptive review process. Accordingly, our Board has rejected Dollar General’s tender offer and reaffirmed its support of the transaction with Dollar Tree, which delivers attractive value in the form of immediate upfront cash and upside participation in a combined Dollar Tree-Family Dollar entity, as well as closing certainty.” Ed Garden, a Family Dollar director and co-founder and Chief Investment Officer at Trian Fund Management, L.P., a large shareholder of the Company, stated, “We are focused on delivering to Family Dollar shareholders the highest value with certainty, and the Dollar Tree transaction does just that. Dollar Tree has taken the antitrust risk off the table by committing to divest as many stores as necessary to obtain antitrust clearance. We remain fully committed to the Dollar Tree transaction.”
08:27 EDTDLTR, DG, FDOFamily Dollar board rejects Dollar General's 'illusory' tender offer
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07:26 EDTZAmerican Enterprise Institute to hold a conference
3rd International Conference on Housing Risk to be held in Washington, D.C. on September 17-18.

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