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Stock Market & Financial Investment News

News Breaks
July 28, 2014
12:42 EDTHSP, DANOYHospira, Danone rise following report of deal talks
Hospira (HSP) and Danone (DANOY) are both climbing after The Financial Times reported that Hospira is in talks about acquiring Danone's medical nutrition business. Meanwhile, Wells Fargo estimated that the deal could be 20%-22% accretive to Hospira's EPS. WHAT'S NEW: French consumer products company Danone is in talks about selling its medical nutrition business to injectable drug maker Hospira, The Financial Times reported yesterday, citing multiple unnamed sources. In the wake of the deal, Hospira could move its tax base to Europe and potentially reduce its tax bill, the newspaper reported. ANALYST REACTION: In a note to investors today, Wells Fargo indicated that it "wouldn't be surprised" if Hospira made the deal. The transaction could raise Hospira's earnings per share by 9%-12% in 2015-2017, excluding operational synergies, if the transaction is carried out in all stock, the firm estimated. If the deal is done in 50% stock and 50% cash, Hospira's EPS could get a 20%-22% boost, excluding operational synergies, the firm estimated. Wells calculated that Hospira's tax bill would be cut to 21% in 2015 and 19% afterwards, from the firm's current forecast of tax rates ranging from 24%-26% from 2015-2017. However, Wells Fargo indicated that it did not see a clear strategic rationale for the deal from Hospira's perspective. It kept a Market Perform rating on the stock. PRICE ACTION: In early afternoon trading, Hospira rose 1.7% to $52.62 and Danone shares trading in New York added nearly 1% to $15.
News For HSP;DANOY From The Last 14 Days
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October 30, 2014
08:28 EDTDANOYDanone upgraded to Buy from Neutral at Citigroup (yesterday)
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October 27, 2014
07:22 EDTHSPAmerican College of Chest Physicians to hold a conference
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October 22, 2014
07:21 EDTHSPU.S. DHS investigates medical gear for potential cyber defects, Reuters says
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October 20, 2014
16:20 EDTDANOYOn The Fly: Closing Wrap
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12:37 EDTDANOYOn The Fly: Midday Wrap
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10:14 EDTDANOYMead Johnson volatility elevated, Danone not carrying out a review for takeover
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09:22 EDTDANOYOn The Fly: Pre-market Movers
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08:04 EDTHSPGerman fund pressured to sell Mylan stake over drug used in executions, FT says
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06:00 EDTDANOYDanone acquisition of Mead would not be well received, says Bernstein
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October 19, 2014
14:18 EDTDANOY, HSPFresenius, others explore bid for Danone medical nutrition unit, Reuters says
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13:21 EDTDANOYDanone says not carrying out review on Mead Johnson takeover, Reuters says
In response to reports on Friday that French food company Danone (DANOY) was pursuing a takeover of pediatric nutrition company Mead Johnson (MJN), Danone made a statement on Sunday saying that it was not carrying out a review of a Mead Johnson takeover, says Reuters. Reference Link
October 17, 2014
16:17 EDTDANOYOn The Fly: Closing Wrap
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12:57 EDTDANOYDanone to pursue takeover of Mead Johnson, sources say, Reuters reports
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12:36 EDTDANOYDanone will pursue Mead Johnson takeover, sources say, Reuters reports
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