U.S. Home Prices Drop 3.3%; Lawson, Infor, Golden Gate $2 B Deal

Arthi Gupta
26 Apr, 2011
New York City

The U.S. indexes rose after Ford, Coca-Cola and UPS reported higher earnings. Home prices fell 3.3% in February. Boston Properties agreed to sell Carnegie Center portfolio for $468.0 million. Lawson agreed to be acquired by Infor and Golden Gate Capital for $2 billion.

[R]9:40 AM New York – The U.S. indexes rose after Ford, Coca-Cola and UPS reported higher earnings. Home prices fell 3.3% in February. Boston Properties agreed to sell Carnegie Center portfolio for $468.0 million. Lawson agreed to be acquired by Infor and Golden Gate Capital for $2 billion.[/R]

U.S. indexes and European markets advanced after reports of better-than-anticipated corporate earnings.

Asian markets declined after Nintendo stated profits fell for the second consecutive year. The company reported sales of the new 3DS handheld game player has been lower than expected in the U.S. and Europe.

Fed’s rate setting meeting is scheduled to leave rates unchanged after the two-day meeting that ends on Wednesday. Fed Chairman is expected to hold first-ever press conference immediately after the policy meeting.

The U.S. is considering imposing sanctions against Syria over the violent clampdown on anti-government protesters there, reports said. These include a freeze on Syrian assets in areas under U.S. jurisdiction as well as a ban on doing business with America.

After the close yesterday, Netflix Inc, the closely watched video rental service provider reported first quarter earnings increased 88% to $60 million or $1.11 a share compared to $32 million or 59 cents a share. Revenues increased 46% to $719 million.

U.S. Home Prices Drop

Home prices in the U.S. showed another notable decrease in February, according to a report released by Standard and Poor''s on Tuesday.

The report showed that the S&P/Case-Shiller 20-City Composite Home Price fell at an annual rate of 3.3% in February compared to a 3.1% annual decrease in January.

Lawson Agrees for Acquisition by Infor, Golden Gate Capital

Lawson Software, Inc., the enterprise software agreed to be acquired by GGC Software Holdings, Inc. and Infor for $11.25 per share in cash or about $2 billion.

The offer represents a 7.2% discount to Lawson''s closing price of $12.12 on Monday, but represents a 13.9% premium to Lawson''s closing price of $9.88 on March 7.

Aegon Divests Transamerica Reinsurance Unit to Scor

Aegon N.V., the Dutch insurer agreed to divest its life reinsurance business, Transamerica Reinsurance business to French reinsurer Scor SE for $1.4 billion, which comprises cash proceeds of $0.9 billion, with a further $0.5 billion in capital released.

The company plans to use $1.1 billion of the proceeds to repay Dutch State aid.

Rio Tinto Inks JV with Guinea

Rio Tinto Plc, together with its unit Simfer SA, signed a settlement agreement with the Government of Guinea for Simandou iron ore project.

Under the new investment deal, Simfer will pay $700 million to the Guinean Public Treasury for mining concession and the approval of the proposed Simandou joint venture between Rio Tinto and Chalco - a unit of Aluminium Corp of China or Chinalco.

Boston Properties Sells Carnegie Center Portfolio

Boston Properties, Inc., a real estate investment trust signed an agreement to sell its Carnegie Center portfolio for approximately $468.0 million to a joint venture between Normandy Real Estate Partners and The Landis Group.

Pearson Acquires Schoolnet

Pearson Plc, the UK-based media and learning solutions company acquired the New York City-based education technology firm Schoolnet, Inc. for $230 million in cash.

Earnings Review

Ameriprise Financial, Inc. ((AMP)), the provider of financial planning, and products and services reported first quarter revenue grew 17% to $2.65 billion from $2.27 billion in the year-ago period. Net income in the quarter rose 13% to $241 million or 94 cents per diluted share compared to net income of $214 million or 81 cents per share in the year-ago quarter.

Express Scripts, Inc. ((ESRX)), the pharmacy benefit management services provider said first quarter revenues declined 0.4% to $11.09 billion from $11.14 billion in the same quarter last year. Net income in the quarter climbed 25.5% to $326.5 million or 61 cents per diluted share compared to net income of $260.2 million or 47 cents per share in the prior-year quarter.

Ford Motor Company ((F)), the automotive giant stated first quarter total company revenues climbed 17.7% to $33.1 billion from the prior-year quarter''s $28.1 billion. Net income in the quarter grew 22% to $2.55 billion or 61 cents per diluted share compared to net income of $2.09 billion or 50 cents per share a year ago.

The Coca-Cola Company ((KO)), the non-alcoholic beverage company said first quarter net operating revenues climbed 40% to $10.52 billion versus $7.52 billion in the year-ago quarter. Net income in the quarter grew 18% to $1.90 billion or 82 cents per diluted share compared to net income of $1.61 billion or 69 cents per share a year ago.

United Parcel Service, Inc. ((UPS)), the package delivery company said first quarter total revenue rose 7.2% to $12.58 billion from $11.73 billion in the comparable period last year. Net profit in the quarter surged 66% to $885 million or 88 cents per diluted share compared to net profit of $533 million or 53 cents per share reported last year.