U.S. Futures Higher, eBay Acquires Fashion Site; Talisman, Sasol Deal

Arthi Gupta
20 Dec, 2010
New York City

U.S. stock futures gained after tensions escalated in the Korean peninsula. Sara Lee contemplated selling itself to Brazil-based JBS for more than $10 billion. eBay agreed to acquire Germany-based brands4friends for about $200 million. Australia based Perpetual ended takeover talks with KKR.

[R]8:05 AM New York – U.S. stock futures gained after tensions escalated in the Korean peninsula. Sara Lee contemplated selling itself to Brazil-based JBS for more than $10 billion. eBay agreed to acquire Germany-based brands4friends for about $200 million. Australia based Perpetual ended takeover talks with KKR.[/R]

World markets traded mixed after South Korea conducted live-fire military exercises despite North Korea''s vow to retaliate.

In the week existing and new home sales, durable goods orders, personal consumption and third quarter GDP.

Sara Lee Considers Possible Takeover by JBS

Sara Lee Corp., the packaged food company is considering selling itself to the world''s largest beef producer JBS SA for more than $10 billion, according to reports. JBS is said to have approached the company about a potential deal a few months ago.

Alberto Culver Stockholders Approve Merger

Alberto Culver Company, the beauty care company announced that its stockholders voted to approve the acquisition by Unilever NV, the Anglo-Dutch consumer goods company for $3.7 billion of all outstanding shares of Alberto Culver for $37.50 per share in cash.

Cumulus Media Confirms Bid for Citadel Broadcasting

Cumulus Media Inc. confirmed that on November 29 it made a proposal to acquire all outstanding shares of Citadel Broadcasting Corporation for $31 per share. The proposed transaction values Citadel as an enterprise at approximately $2.1 billion.

KKR and Perpetual End Takeover Talks

Perpetual Ltd., the Australian asset manager said on Sunday evening that it ended takeover talks with U.S.-based private equity firm Kohlberg Kravis Roberts & Co. after the two parties could not reach an agreement.

KKR, in mid-October, had offered as much as A$1.75 billion or $1.72 billion, to acquire Perpetual.

Talisman Energy Announces Strategic Partnership with Sasol

Talisman Energy Inc. reached an agreement to create a strategic partnership with Sasol Limited to develop the Farrell Creek assets in Talisman''s Montney shale play in northeastern British Columbia.
Talisman will sell a 50% working interest in its Farrell Creek assets to Sasol for a total consideration of C$ 1,050 million.

eBay Acquires brands4friends

eBay Inc., the online auctioneer reached a definitive agreement to acquire all of the shares of brands4friends, Germany’s largest online shopping club for fashion and lifestyle, for cash at a transaction value of approximately $200 million or €150 million.

The move is expected to strengthen eBay’s position as a leading online fashion destination in Europe.

Earnings Review

Coca-Cola Enterprises Inc. ((CCE)), the soft drink bottler affirmed for full-year 2010, the company still expects comparable and pro forma earnings per share in a range of $1.74 to $1.78 and pro forma revenue is anticipated to be around $7.4 billion.

Natus Medical, Inc. ((BABY)), the provider of healthcare products reported for the first quarter of 2011, the company estimates adjusted earnings per share in the range of $0.10 to $0.12 on revenue of $56.5 million to $58.5 million and for full-year 2011, adjusted earnings per share are projected in the $0.77 to $0.80 range on revenues of $247 million to $250 million.

Pentair, Inc. ((PNR)), the diversified industrial manufacturing company said it still estimates 2010 earnings per share in the range of $1.93 to $1.98 and sales of around $3.0 billion.

Penn Virginia Corporation ((PVA)), the independent oil and gas explorer announced a 2011 capital expenditures budget of $290 million and also provided initial full-year 2011 outlook. The 2011 capital budget is about 40% lower than expected 2010 capital expenditures of $475 million due primarily to a weak natural gas price environment and outlook.