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Stock Market & Financial Investment News

News Breaks
July 28, 2014
12:42 EDTDANOY, HSPHospira, 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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May 20, 2015
09:52 EDTHSPAlliance for Health Reform holds a webcast on biosimilars
"Biosimilars in the U.S.: Current & Emerging Issues" provides essential background on the U.S. and international markets for reference biologics and biosimilars, outline current policy and regulatory issues, and describe implications for the future. Speakers include Chief Scientific Officer Ramachandra from Hospira, Executive Director Eich from Amgen on the briefing being held on May 20 at 12 pm. Webcast Link

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