Tuesday, June 16, 2015

Markets rise on corporate deals

Dow advanced 113, advancers over decliners almost 2-1 & NAZ gained 25.  The MLP index lost a fraction in the 421s & the REIT index went up 2+ to the 312s.  Junk bond funds rebounded after recent selling & Treasuries were higher.  Crude rose as Texas braces for a storm & oil edged lower.

AMJ (Alerian MLP Index tracking fund)

CLN15.NYM....Crude Oil Jul 15....59.88 Up ...0.36 (0.6%)

Live 24 hours gold chart [Kitco Inc.]

NCR jumped after a report that Blackstone Group & Carlyle Group are making a joint bid of more than $10B for the ATM maker, according to leakers.  The offer includes debt.  Other buyout firms are vying for NCR, including Apollo Global Management & Thoma Bravo LLC.  The purchase would be one of the biggest buyouts since the 2008 financial crisis & a rare joint effort by 2 of the largest private equity firms.  The ATM & checkout-equipment maker is more than a 1/3 owned by hedge funds.  The largest shareholder is believed to be Jana Partners.  The stock soared 3.36 (11%).  If you would like to learn more about NCR, click on this link:

NCR Jumps on Report of Joint $10 Billion Blackstone-Carlyle Bid


Coty is on track to acquire the beauty business of Procter & Gamble, a Dow stock & Dividend Aristocrat, in a $12B deal that would make the company the world leader in perfume & hair care, according to a leaker.  If the deal goes though, COTY would get its hands on brands such as Gucci & Hugo Boss perfume, Wella & Clairol hair care products, Max Factor & Cover Girl make-up, part of its strategy to reverse its own declining sales trends.  For PG, the sale is part of a large plan to narrow its focus on fewer, faster-growing brands.  The #1 household products maker said in Aug it could sell about half of its slow-growing brands over the next 2 years.  For tax purposes, the deal would be completed through a "Reverse Morris Trust", which means that PG would spin off its beauty assets into a separate company that would then absorb Coty in an all-share deal.  Luxembourg-based JAB Holdings, which controls 75% of COTY, would own about 1/3 of the equity in the combined business & have about 48% of voting rights.  COTY stock shot up 5.03 (19%) & PG shares rose 98¢.

If you would like to learn more about COTY, click on this link:

If you would like to learn more about PG, click on this link:

Coty on track to clinch P&G beauty deal in coming weeks-sourcesReuters

Coty (COTY)

Procter & Gamble (PG)

Yahoo! CEO Marissa Mayer said that the company’s spinoff of its stake in Alibaba Group Holding is proceeding as planned.  She’s confident about the plan, which will distribute shares in the Chinese e-commerce company to YHOO shareholders & shouldn’t be affected by any potential regulatory changes.  The company has been reassured that any new tax steps weren’t “specific” to YHOO.  Last month, an official at the IRS said the agency is considering changes to rules concerning spinoffs.  The Alibaba stake was valued at almost $40B when the spinoff was announced.  YHOO said potential IRS changes to the tax-free treatment of spinoffs shouldn’t affect previously filed requests.  The company has already lodged its plan & is still working toward undertaking the transaction in Q4.  “We’re proceeding with our plan,” Mayer said.  “The changes don’t apply for previous requests. These proposed changes aren’t changing the applicable law, but just changing the processes. There are many of these transactions. We feel like we should proceed with the transaction as we planned.”  Mayer is looking for ways to jump-start growth as she faces increased competition.  During Q1, sales, excluding revenue shared with partner websites, fell 4% to $1.04B, missing estimates.  She also talked up the new partnership with the National Football League to show a game in Oct on the YHOO service.  Mayer said she would like to work with the NFL more in the future.  The stock rose chump change.  If you would like to learn more about YHOO, click on this link:

Yahoo CEO Says Alibaba Stake Spinoff Proceeding as Planned

Yahoo! (YHOO)

Corp news brought out buyers in the PM.  Meanwhile the FOMC is having its big meeting to decide what to do with interest rates (& when).  Tomorrow Janet will speak & the markets will listen.

Dow Jones Industrials

3 Stocks You Should Own Right Now - Click Here!

No comments: