U.S. Movers: Avon, Glaxo, Global Payments, Groupon, Express Scripts

Mukesh Buch
02 Apr, 2012
New York City

Avon rejected $10 billion offer from Coty. Glaxo raised its stake in Theravance. Global Payments third quarter net soared 21% and lifted full year revenue guidance. Groupon revised fourth quarter guidance. Express Scripts completed acquisition of Medco Health for $29.1 billion.

[R]11:20 AM New York – Avon rejected $10 billion offer from Coty. Glaxo raised its stake in Theravance. Global Payments third quarter net soared 21% and lifted full year revenue guidance. Groupon revised fourth quarter guidance. Express Scripts completed acquisition of Medco Health for $29.1 billion.[/R]

Avon Products, Inc. ((AVP)) soared 15% or $2.92 to $22.28 after the beauty products maker today rejects unsolicited interest from a private fragrance maker Coty Inc. to acquire the cosmetic maker for $23.25 per share or $10 billion in cash. The indicated interest represents 1.1 times Avon''s net revenue or 8.7 times operating earnings of last year. Coty offer is 20% premium to Friday’s close.

Express Scripts, Inc. ((ESRX)) gained 3.1% or $1.72 to $55.90 after the health insurer completed its previously announced $29.1 billion acquisition of Medco Health Solutions Inc. ((MHS)) to create the leading healthcare service provider. Each share of Medco converted into right to receive $28.80 in cash without interest and 0.81 shares of the new Express Scripts.

GlaxoSmithKline plc ((GSK)) increased 1.5% or 69 cents to $45.60 after the U.K. based pharmaceuticals maker made stock purchase agreement with Theravance Inc. ((THRX)), to acquire 10 million shares at a price of $21.29 per share with total investment of $213 million. These will increase stake of GSK to 26.8% and total ownership to 25.8 million shares of Theravance. The transaction is subject to approval at annual meeting scheduled on May 15.

Theravance Inc. soared 19.4% to $23.25.

Groupon, Inc. ((GRPN)) dropped 11.7% or $2.15 to $16.23 after the online retailer revised reduction of fourth quarter 2011 revenue by $14.3 million mainly due to higher refunds to merchants and operating expenses that reduced operating income by $30 million and net income by $22.6 million and earnings per share by $0.04.

Global Payments Inc. ((GPN)) decreased 3.2% or $1.53 to $45.97 after the electronic payment service provider reported third quarter total revenue increased 17% to $533.5 million from $456.4 million in the same quarter last year. Net income in the quarter soared 21% to $57.9 million or 73 cents per diluted share compared to $47.8 million or 59 cents per share in the year ago.

Pinnacle Airlines Corp. ((PNCL)) tumbled 55.1% or 0.74 cents to 0.60 cents after the airline company intends to file Chapter 11 to implementing turnaround plan.