U.S. Indexes Gain; Temple-Inland Rejects Takeover Bid

Arthi Gupta
07 Jun, 2011
New York City

U.S. indexes gained ahead of Fed Reserve Chairman Bernanke''s speech. The Food and Agriculture Organization forecasted high food prices for this year and next. NBCUniversal agreed to buy Blackstone''s stake in Universal Orlando for $1.03 billion. Temple-Inland rejected bid from International Paper.

[R]10:30 AM New York – U.S. indexes gained ahead of Fed Reserve Chairman Bernanke''s speech. The Food and Agriculture Organization forecasted high food prices for this year and next. NBCUniversal agreed to buy Blackstone''s stake in Universal Orlando for $1.03 billion. Temple-Inland rejected International Paper’s $3.31 billion takeover proposal.[/R]

U.S. indexes futures traded cautiously higher ahead of Federal Reserve Chairman Ben Bernanke''s speech later today. Asian markets traded lower after a decline in oil and metal prices.

The indexes in Europe gained after euro-zone retail sales rose 0.9% and Germany factory orders increased 2.8% in April.

FAO Forecasts High Food Prices

World food prices are expected to remain stubbornly high this year and next, according to a report released by the Food and Agriculture Organization today.

The FAO Food Price Index eased to 232 points in May from a revised estimate of 235 points in April. The agency cited the declines in global prices of cereals and sugar as reasons for the slight decline in the index in May.

NBCUniversal Purchases Blackstone’s Interest in Universal Orlando

NBCUniversal agreed to acquire The Blackstone Group''s 50% interest in Universal Orlando, a theme park resort in Florida, for $1.025 billion. The deal, which has an enterprise value of $3.165 billion, is expected to close on July 1.

Thomson Reuters Plans to Sell its Healthcare Business

Thomson Reuters announced its intention to divest its Healthcare business, which has been part of the company''s Healthcare & Science segment.

The Healthcare business provides data, analytics and performance benchmarking solutions and services to companies, government agencies and healthcare professionals.

GE, Capital One Bid for ING U.S. Online Bank

General Electric Co. and Capital One Financial Corp. are interested in Dutch lender ING Groep NV''s U.S. online bank, Bloomberg reported, quoting people with direct knowledge of the matter. The two firms have submitted bids last week. The sale is expected to raise as much as $9 billion.

GE made an all-cash offer for the U.S. unit, while Capital One is said to be seeking a cash and stock deal.

ING''s U.S. online bank has $81.6 billion of deposits as well as $40.5 billion of mortgage loans and $19.9 billion of mortgage-backed securities.

Temple-Inland Rejects International Paper Bid

Temple-Inland said its board unanimously rejected an unsolicited offer from International Paper valuing the company at $3.31 billion or $30.60 per share in cash stating that the proposal grossly undervalues Temple-Inland and is not in the best interest of Temple-Inland''s stockholders.

Earnings Review

Ferrellgas Partners, L.P. ((FGP)), the distributor of propane and related equipment and supplies stated third quarter revenues rose 19% to $732.37 million from $615.3 million in the same quarter a year ago. Net earnings in the quarter plunged 89% to $3.17 million or 4 cents per diluted share compared to net earnings of $28.86 million or 41 cents per share in the prior-year quarter.

Navistar International Corporation ((NAV)), the truck maker reported second quarter sales and revenues grew 22.6% to $3.36 billion from $2.74 billion last year. Net income in the quarter increased 72% to $74 million or 93 cents per diluted share compared to net income of $43 million or 60 cents per share last year.

PriceSmart, Inc. ((PSMT)), the consumer goods and perishables company said comparable sales for the month of May increased 19%, compared to the same five-week period last year.

Net sales for the month increased 18.7% to $140.7 million from $118.5 million a year earlier.

The Talbots, Inc. ((TLB)), the specialty retailer reported first quarter net sales slipped 6% to $301.31 million from $320.66 million in the prior year. Net earnings generated in the quarter were $739,000 or 1 cent per diluted share compared to a net loss of $4.37 million or 8 cents per share in the prior year.