U.S. Indexes Lower; Asahi Kasei to Buy Zoll Medical for $2.21 B

Arthi Gupta
12 Mar, 2012
New York City

U.S. and global indexes fell after China

[R]10:20 AM New York – U.S. and global indexes fell after China’s deficit in February surged. The OECD economic indicator index rose in January. Japan-based Asahi Kasei agreed to acquire Zoll Medical for $2.21 billion.[/R]

U.S. and global indexes declined after China reported a wider than expected trade deficit in February.

China''s trade deficit widened to $31.48 billion in February, the highest since 1989 as weak global demand dampened exports in February, while imports surged after the New Year holiday, data published by the General Administration of Customs showed on Saturday.

Imports surged 39.6% to $145.9 billion and exports increased 18.4% from a year ago to $114.5 billion in February.

Separately, Japan''s consumer confidence index slipped to 39.5 in February from 40 in January, a monthly survey data from the Cabinet Office showed today.

Traders are focused on the euro area finance ministers’ meeting in Brussels today that is set to approve the second bailout package for Greece. Fitch Ratings downgraded Greece to ''restricted default.''

Fitch Ratings downgraded Greece to ''restricted default'' from ''C'' saying that the debt exchange constitutes a sovereign default event under the agency''s distressed debt exchange rating criteria.

Germany sold €3.493 billion of debt at lower borrowing costs.

OECD Leading Index Up

The OECD economic indicator index rose for the third consecutive month in January to 100.9 from 100.5 in December, data showed today.

Asahi Kasei to Acquire ZOLL Medical

Japan-based Asahi Kasei Corporation will acquire Zoll, a manufacturer of resuscitation and critical care devices for approximately $2.21 billion.

The purchase price represents a premium of 29.6% over Zoll’s volume weighted average closing stock price over the 30 trading day period ended March 9, 2012, and a 23.8% premium over the closing price on March 9, 2012.

Praxair Acquires Volzhsky Azot

Praxair, Inc. entered into an agreement with SIBUR - Russian Tyres to acquire industrial and packaged gases business in the Volgograd Region of the Russian Federation. Financial terms of the agreement were not disclosed.

The business operates under the name Volzhsky Azot and includes two air separation units and a bulk and packaged gas business.

Earnings Review

Cumulus Media Inc. ((CMLS)), the radio broadcasting company said fourth quarter net revenues soared 316% to $290.21 million from $69.78 million in the prior year. Net loss in the quarter was $13.14 million or 14 cents per diluted share compared to net income of $7.51 million or 17 cents per share last year.

Volkswagen AG (((VLKAY)), the German automaker stated fiscal year 2011 revenue increased 25.6% to €159.3 billion from €126.9 billion the previous year. Consolidated operating profit rose to a record €11.3 billion, an improvement of €4.1 billion compared with 2010.

Youku Inc. ((YOKU)), the Internet television company in China reported fourth quarter net revenues surged 103% to RMB309.3 million from RMB152.47 million last year. Net loss in the quarter widened 32% to RMB49.61 million compared to a net loss of RMB37.72 million in the previous year. Loss per ADS narrowed to RMB0.43 from RMB0.89 a year earlier.