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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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July 26, 2015
20:33 EDTDANOYDanone CEO 'won't revisit' potential sale of medical nutrition unit, WSJ says
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July 24, 2015
05:38 EDTDANOYDanone confirms FY15 organic revenue guidance of up 4%-5%
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05:36 EDTDANOYDanone reports 1H15 EPS EUR 1.37 vs. EUR 1.16 last year
Reports 1H15 revenue EUR 11.39B vs. EUR 10.47B last year.
July 16, 2015
16:01 EDTHSPHospira announces U.S. launch of generic bivalirudin for injection
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