Knight Investors Extract Huge Discount, Kinder in Pipeline Deal

Arthi Gupta
07 Aug, 2012
New York City

U.S. indexes extended gains of last two trading days. Kinder Morgan Energy acquired interest in U.S. pipeline assets for $6.2 billion. Campbell Soup completed the acquisition of Bolthouse for $1.55 billion.

[R]10:30 AM New York – U.S. indexes extended gains of last two trading days. Kinder Morgan Energy acquired interest in U.S. pipeline assets for $6.2 billion. Campbell Soup completed the acquisition of Bolthouse for $1.55 billion.[/R]

Stocks on Wall Street opened higher following the gains in Europe and despite the weak economic data from Italy and Germany.

Italy extended recession for the fourth quarter in a row and German machinery orders declined.

Separately, embattled market maker Knight Capital opened higher after the trader completed emergency financing with a consortium of investors.

Jeffries Group Inc led the investment group that included Blackstone Group LP, TD Ameritrade Holding Corp and the rival trading firm Getco. Investor group collectively owns 73% of Knight and will be issued preferred shares that will covert to common at $1.50 a share.

KMP Acquires Interest in U.S. Pipeline Assets

Kinder Morgan Energy Partners, L.P. will acquire Tennessee Gas Pipeline and a 50% interest in El Paso Natural Gas pipeline from Kinder Morgan, Inc. for approximately $6.22 billion, including about $1.8 billion in assumed debt with TGP and approximately $560 million of proportional debt with EPNG.

Campbell Completes BoltHouse Purchase

Campbell Soup completed the acquisition of Bolthouse Farms from a fund managed by Madison Dearborn Partners, LLC, a private equity firm, for $1.55 billion in cash.

Home Depot to Acquire U.S. Home Systems

The Home Depot agreed to acquire U.S. Home Systems, Inc., an exclusive provider of kitchen and bath refacing products and services for $12.50 per share in cash which represents an approximately 38% premium over USHS'' closing price on August 6.

Earnings Review

Church & Dwight Co., Inc. ((CHD)), the specialty products manufacturer said second quarter reported net sales increased 3.2% to $696.4 million. Net income for the quarter declined to $79.3 million or 56 cents per share compared to net income of $82.6 million or 57 cents per share for the same period in 2011.

CVS Caremark Corporation ((CVS)), the pharmacy health care provider reported second quarter net revenues increased 16.3% to a record $30.7 billion. Net income attributable to the company rose to $966 million from $816 million in the year ago quarter. Earnings per share rose to 75 cents from 60 cents last year.

Office Depot Inc. ((ODP)), the office products retailer said second quarter sales fell 7% to $2.51 billion compared to the second quarter of 2011. Net loss for the quarter widened to $64 million or 23 cents per diluted share compared with a loss of $29 million or 11 cents per share loss last year.

Spectrum Brands Holdings, Inc. ((SPB)), the consumer products company said third quarter net sales increased 2.5% to $824.8 million from the prior-year quarter. Net income for the quarter surged to $58.7 million or $1.13 per share from $28.6 million or 56 cents per share reported a year ago.