U.S. Movers: Black Diamond, Covidien, Kellogg, Lennar, TiVo

Mukesh Buch
24 Sep, 2012
New York City

Black Diamond agreed to acquire PIEPS Holding GmbH. Covidien to buy CNS Therapeutics for $100 million. Lennar net climbed on sales. TiVo settled its pending patent litigation with Verizon.

[R]10:45 AM New York – Black Diamond agreed to acquire PIEPS Holding GmbH. Covidien to buy CNS Therapeutics for $100 million. Lennar net climbed on sales. TiVo settled its pending patent litigation with Verizon.[/R]

Black Diamond, Inc. ((BDE)) slipped 1% or 9 cents to $8.92 after the outdoor recreational products maker agreed to acquire PIEPS Holding GmbH purchased valued for $10.4 million in cash and $2.7 million in debt. The transaction is expected to close on October 1. PIEPS'' fiscal year sales were about $8.2 million.

Covidien PLC ((COV)) dropped 14 cents to $59.63 after the Ireland based healthcare products maker agreed to acquire CNS Therapeutics, Inc., a privately held specialty pharmaceutical company for approximately $100 million.

Covidien said in last December that it planned to spin off Mallinckrodt into a stand-alone company and process is expected to be completed in mid-2013.

Kellogg Company ((K)) slid 4 cents to $51.41 after the ready-to-eat foods maker entered into a 50:50 partnership with Singapore based Wilmar International Limited, a palm oil producer to manufacture and sell cereal and savory snacks in China.

Wilmar will contribute infrastructure, supply chain, sales and distribution network in China and Kellogg will provide its deep cereal and snacks category expertise and headquartered will be in Shanghai of China.

Lennar Corporation ((LEN)) slumped 2.2% or 86 cents to $36.65 after the homebuilder reported total revenues in the third quarter ending in August climbed 34% to $1.01 billion from $820.2 million in the same period of last year. Net income in the quarter surged more than four-fold to $87.1 million or 40 cents per diluted share compared to $20.7 million or 11 cents per share a year ago quarter.

New orders jumped 44% and backlog soared 79% to $1.3 billion and gross margin on sales was 23.2%, advanced 210 basis points.

Quicksilver Resources Inc. ((KWK)) increased 2.9% or 12 cents to $4.23 after the oil and gas explorer agreed with SWEPI LP, a subsidiary of Royal Dutch Shell plc, to develop oil and gas assets in the Sand Wash Basin in Northwest Colorado that covers in excess of 850,000 acres.

TiVo Inc. ((TIVO)) climbed 7.2% or 69 cents to $10.25 after the broadcasting and cable TV guide provider settled its pending patent litigation with Verizon Communications Inc. Verizon will provide total compensation of $250.4 million comprised of $100 million in cash followed by quarterly payment totaling to additional $150.4 million till July 2018.