U.S. Movers: Aetna, Kinder Morgan, Lowe's, Zagg

Mukesh Buch
20 Aug, 2012
New York City

Aetna agreed to buy Coventry Health for $5.7 billion and FMC Technologies agreed to acquire Pure Energy for C$282 million. Kinder Morgan said it sold natural gas pipe networks and facilities for $3.3 billion. Lowe''s declined on weak outlook.

[R]10:05 AM New York – Aetna agreed to buy Coventry Health for $5.7 billion and FMC Technologies agreed to acquire Pure Energy for C$282 million. Kinder Morgan said it sold natural gas pipe networks and facilities for $3.3 billion. Lowe's declined on weak outlook.[/R]

Aetna Inc. ((AET)) jumped 4.7% or $1.82 to $39.84 after the healthcare company agreed to acquire Coventry Health Care, Inc. ((CVH)) for $7.3 billion including the debt. Under the terms, Aetna will pay $27.30 in cash and 0.3885 shares for each of Coventry share. The total per share valued $42.08 or $5.7 billion.

FMC Technologies, Inc. ((FTI)) slipped 1.7% or 85 cents to $47.12 after the oil and gas services provider agreed to acquire Canada based Pure Energy Services Ltd. for C$11 per share in cash or about C$282 million, a 40% premium to the close on Friday.

Kinder Morgan Management, LLC ((KMR)) gained 35 cents to $74.08 after the oil and gas service provider agreed to sale certain assets in the rocky mountain area to a privately held Tallgrass Energy Partners, LP for approximately $1.8 billion in cash. However, including debt, deal is valued for $3.3 billion. The transaction is expected to close in the fourth quarter.

Kindred Healthcare, Inc. ((KND)) slid 7 cents to $11.24 after the healthcare service provider agreed to acquire IntegraCare Holdings, Inc. a portfolio company of private equity firm Flexpoint Ford, LLC, for a purchase price of $71 million in cash. The transaction is expected to close by the end of third quarter.

Lowe's Companies, Inc. ((LOW)) plummeted 4.2% or $1.17 to $26.72 after the home improvement retailer reported net sales in the second quarter ending on August 3 slid 2% to $14.2 billion compared to $14.5 billion in the same period of last year. For the quarter, comparable store sales decreased 0.4%

Net earnings in the quarter declined 10% to $747 million compared to $830 million and diluted earnings per share were flat at 64 cents from a year ago period.

The retailer expects total sales for the fiscal 2012 to be nearly flat and comparable store sales to increase about 0.5% and earnings per share of approximately $1.64.

Zagg Inc. ((ZAGG)) tumbled 14% or $1.17 to $7.24 after the packaging company said Robert G. Pedersen II has stepped down as CEO and Chairman and Chief Operating Officer Randall Hales has been appointed as interim CEO. However, the company reiterates its full year guidance for 2012 revenue of $256 million.