U.S. Movers: Duke Energy, Microsoft, SXC Health Solutions, Verso Paper

Mukesh Buch
03 Jul, 2012
New York City

Duke Energy completed its merger with Progress Energy. Microsoft wrote down $6.2 billion of assets in its online services division. SXC Health Solutions completed merger of Catalyst Health Solutions.

[R]10:40 AM New York – Duke Energy completed its merger with Progress Energy. Microsoft wrote down $6.2 billion of assets in its online services division. SXC Health Solutions completed merger of Catalyst Health Solutions.[/R]

Duke Energy Corporation ((DUK)) traded at $68.86 after the electric utility confirms previously announced completion of merger with Progress Energy Inc. effective July 2.

On standalone basis the company had adjusted earnings guidance for the fiscal 2012 a share in the range for 2012 of $1.40 to $1.45. Due to effect of 1-for-3 reverse stock split that was completed with this merger this guidance range is the equal of $4.20 to $4.35 a share.

Microsoft Corporation ((MSFT)) fell 11 cents to $30.46 after the software developer said it plans to write-down its online services division’s goodwill of approximately $6.2 billion.

Microsoft completed its acquisition of aQuantive on August 2007 in cash transaction valued $6.3 billion. While the aQuantive acquisition provide tools for Microsoft’s online advertising, the acquisition did not accelerate growth as anticipated contributing to the write-down.

MModal Inc ((MODL)) advanced 8% or $1.05 to $13.98 after the clinical software company agreed to go private and will be acquired by a private investment arm of JP Morgan Chase & Co. for $14 a share cash or a total of $1.1 billion. The deal is expected to close in the third quarter.

SXC Health Solutions Corp. ((SXCI)) gained 92 cents to $97.90 after the pharmacy benefit company completed previously disclosed merger of Catalyst Health Solutions, Inc. The merger deal became effective following approval of stockholders of both the company at special meetings held on Monday morning and will be completed in the second quarter of 2012.

Under the terms, stockholders of Catalyst will receive $28 in cash and 0.6606 of a share of SXC.

The Corporate Executive Board Company ((EXBD)) soared 10.9% or $4.55 to $46.19 after the business service provider agreed to pay $660 million in cash to acquire UK -based SHL a cloud-based provider.

Total revenues of SHL in 2011 were $209.8 million and serve more than 10,000 clients in 111 countries that includes above 40% of Fortune 500 and more than 80% of the FTSE 100.

Verso Paper Corp. ((VRS)) increased 67.5% or 79 cents to $1.96 after the holding company said it is in talks with certain holders of NewPage’s 11.38% first-lien senior secured notes to achieve a potential business combination.

The terms for the proposed transaction would provide first-lien note holders of NewPage’s with $1.43 billion consisting $1.08 billion of new Verso first-lien notes, $150 million of common stock and $200 million of cash.