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Stock Market & Financial Investment News

News Breaks
August 19, 2014
17:55 EDTPETMPetSmart to explore strategic alternatives, including potential sale
PetSmart announced that based on a thorough business review that began last spring, the Board of Directors has determined that it will explore strategic alternatives for the company to maximize value for shareholders, including a possible sale of the company. The Board has been working with JP Morgan Securities and Wachtell, Lipton, Rosen & Katz to assist in the process. Said Gregory P. Josefowicz, Chairman, “PetSmart has delivered superb returns for our investors over a long period of time, with our shares outperforming the S&P 500 in seven of the last 10 fiscal years, and five out of the last six. Indeed, 5-year total shareholder return as of our fiscal year ended February 2, 2014 was 259.3% versus 140.6% for the S&P 500. For the same period, we delivered EPS CAGR of 21%, with 272 basis points of operating income margin expansion, and we returned nearly $2 billion to shareholders through dividends and share repurchases. We are extremely proud of what our PetSmart team has accomplished and, despite recent headwinds affecting PetSmart and many retailers, firmly believe the Company is very well positioned for superior future performance.” He continued: “Notwithstanding our confidence in the Company’s future prospects, following a detailed Board review of the Company over the last several months, including many constructive conversations with a wide range of shareholders, we have decided to explore options to maximize shareholder value, including a potential sale of the Company.” “Whatever the outcome of the process, we are as committed as ever to continuing to meet the needs of our customers and their pets, attracting and retaining world class talent, and driving sales and margins,” said Josefowicz. “We are not providing a timetable for our process, nor do we intend to comment further or update the market until it is complete.” David K. Lenhardt, President and CEO, said, “The entire management team is dedicated to continuing to deliver value for our customers and our shareholders. We are focused on pursuing our strategic plans, including this afternoon’s announcement that we have entered into a definitive agreement to acquire Pet360 which will allow PetSmart to enhance its omni-channel capabilities and provide customers a unique and leading 360-degree shopping experience. This afternoon’s announcement about exploring alternatives will not distract the management team from continuing to pursue a broad range of performance improvement initiatives already underway.”
News For PETM From The Last 14 Days
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December 19, 2014
16:35 EDTPETMMarket ends week higher as Fed reassures, oil stabilizes
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December 17, 2014
10:36 EDTPETMOptions with decreasing implied volatility
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December 15, 2014
16:45 EDTPETMJANA does not intend to nominate any individuals for PetSmart board
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16:36 EDTPETMOn The Fly: Closing Wrap
The Dow began the session with triple digit gains, but the move was short lived and so was the positive start for the equities market, which tumbled with oil prices and struggled for the remainder of the session. The day’s economic reports, which included the Empire Manufacturing report, industrial production and capacity utilization reports, and the NAHB housing market index, had little effect on the market. Stocks recovered a bit but did not get back into the green before the close, with investors wondering how the Fed, which begins its final FOMC meeting of the year tomorrow, will view its strategy in light of the recent weakness in oil. ECONOMIC EVENTS: In the U.S., the Empire State manufacturing index fell to -3.6 in December, which was significantly worse than the expectation for it to rise to 12.4 from its prior 10.2 reading. Industrial production jumped 1.3% in November, which was better than the expected 0.7% increase. The NAHB homebuilder sentiment index fell one point to 57 in December, versus expectations for a one point rise to a 59 reading. Near noon, WTI crude was down more than 2% and was trading below $57 per barrel. COMPANY NEWS: Riverbed Technology (RVBD) rose $1.57, or 8.38%, to $20.31 after the company agreed to be acquired by private equity investment firm Thoma Bravo and the private investor department of Ontario Teachers’ Pension Plan. Riverbed stockholders will receive $21 per share in cash, or a total of approximately $3.6B, which Wells Fargo views as a "good decision" and good deal for the company given the challenges in its business... PetSmart (PETM) advanced $3.30, or 4.25%, to $80.97 after the company agreed to be acquired by a consortium led by BC Partners at a price of $83.00 per share in cash. However, the private equity backers of Petco that were not allowed to participate in the auction process because of competition concerns, Leonard Green & Partners and TPG, could still make a rival offer, according to The Deal Pipeline, citing a source familiar with the situation. MAJOR MOVERS: Among the notable gainers was Sorrento Therapeutics (SRNE), which advanced $1.50, or 25.86%, to $7.30 after the company announced that it has entered into a binding agreement with NantWorks founder Dr. Patrick Soon-Shiong to establish a strategic collaboration to jointly develop next generation immunotherapies for the treatment of cancer and auto-immune diseases. Also higher was Cirrus Logic (CRUS), which rallied $4.12, or 21.87%, to $22.96 after Barclays upgraded the stock two notches to Overweight from Underweight and said the company is poised to make significantly more money per each iPhone sold next year. Among the noteworthy losers was CGG SA (CGG), which was downgraded to Underperform at Raymond James and dropped $2.41, or 28.29%, to $6.11 after Technip (TKPPY) said that it does not plan to file a tender for the company after talks between the companies did not result in a deal. Also lower were shares of Habit Restaurants (HABT), which fell $7.20, or 17.19%, to $34.69 as analysts rolled out coverage of the stock following its IPO about a month ago. Amid the coverage initiations, Habit Restaurants shares were initiated with a Neutral and $41 price target at RW Baird, with a Market Perform rating at Wells Fargo, with an Equal Weight at Stephens and with an Overweight rating and $48 target at Piper Jaffray. INDEXES: The Dow fell 99.99, or 0.58%, to 17,180.84, the Nasdaq dropped 48.44, or 1.04%, to 4,605.16, and the S&P 500 declined 12.70, or 0.63%, to 1,989.63.
12:37 EDTPETMOn The Fly: Midday Wrap
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11:59 EDTPETMRival bid for PetSmart still possible, The Deal says
PetSmart has agreed to be acquired by a BC Partners led consortium for $83 per share, though Leonard Green & Partners and TPG, the private equity backers of Petco that were not allowed to participate in the auction process because of competition concerns, could still make a rival offer, according to The Deal Pipeline, citing a source familiar with the situation. Reference Link
10:23 EDTPETMOptions with decreasing implied volatility
Options with decreasing implied volatility: LE CIEN LULU PETM RH ATHN ADBE
09:27 EDTPETMOn The Fly: Pre-market Movers
HIGHER: Opko Health (OPK), up 13.1% after Pfizer (PFE) and OPKO Health enter into global agreement for hGH-CTP... Cirrus Logic (CRUS), up 7.5% after being upgraded to Overweight from Underweight at Barclays... PetSmart (PETM), up 4.7% after being acquired by BC Partners led consortium for $83 per share... Sohu.com (SOHU), up 3% after being upgraded to Overweight from Neutral at JPMorgan... Oracle (ORCL), up 2.2% after receiving FedRAMP provisional authority to operate. LOWER: Unwired Planet (UPIP), down 25.7% after commenting on Google (GOOG) Markman ruling... EXCO Resources (XCO), down 13% after suspending its dividend.
07:40 EDTPETMPetSmart volatility up into acquisition by BC Partners consortium for $8.7B
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05:49 EDTPETMPetSmart unlikely to receive higher takeover bid, says RW Baird
RW Baird analyst Peter Benedict says PetSmart is unlikely to receive a higher takeover bid compared to the $83 per share that BC Partners is paying to take the company private. Benedict notes that PetSmart had been in a process of reviewing multiple bids before last night's merger announcement. He raised his price target for the stock to $83 from $78 and keeps a Neutral rating on the pet store owner.
December 14, 2014
17:31 EDTPETMPetSmart to be acquired by BC Partners led consortium for $83 per share
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15:23 EDTPETMApollo close to $8B leveraged buyout of PetSmart, Bloomberg says
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December 8, 2014
06:21 EDTPETMDeadline for Petsmart bidders extended as lenders put on leash, NY Post reports
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