Volatile Fiscal Talks Yield No Accord, Duff & Phelps to go Private

Arthi Gupta
31 Dec, 2012
New York City

The U.S. indexes extend world markets slide after weekend discussions among lawmakers failed to produce budget accord after rounds of discussions. Duff & Phelps agreed to be acquired by a consortium for $665.5 million. Clean Harbors completed its acquisition of Safety-Kleen for $1.25 billion.

[R]9:35 AM New York – The U.S. indexes extend world markets slide after weekend discussions among lawmakers failed to produce budget accord after rounds of discussions. Duff & Phelps agreed to be acquired by a consortium for $665.5 million. Clean Harbors completed its acquisition of Safety-Kleen for $1.25 billion.[/R]

U.S. and global indexes edged lower as U.S. lawmakers fail to agree on narrow differences in budget talks.

Senate leaders on Sunday failed to agree on budget talks that lasted several hours and needed an intervention from Vice President Joe Biden.

Lawmakers inched closer in increasing taxes on wealthy taxpayers but the latest demand from Republicans to lower inflation rate for the benefit programs including Social Security. Though both sides have narrowed differences on what level of income to face higher taxes, the latest proposal is centred on tax payers earning more than $450,000, lawmakers are not yielding grounds when it to comes to Estate taxes.

Senate is scheduled to begin an unusual session at 11 a.m. today to discuss how to avoid nearly $600 billion in tax increase in spending cuts that are scheduled to kick in on New Year’s Day.

Several markets around the world are closed or have shorter trading sessions on New Year’s Eve.

In domestic economic news, traders look ahead during the week for non-farm payrolls, the weekly jobless claims, the ADP''s private sector employment and construction spending to gauge the health of the economy.

China''s manufacturing rose to a 19-month high in December.

The HSBC manufacturing purchasing managers'' index rose to 51.5 in December from 50.5 in November, higher than the flash reading of 50.9.

Duff & Phelps to Be Acquired By Consortium

Duff & Phelps Corp., the financial advisory and investment banking company agreed to be acquired by a consortium comprising controlled affiliates of The Carlyle Group, Stone Point Capital LLC, Pictet & Cie and Edmond de Rothschild Group for $15.55 per share in cash in a transaction valued at approximately $665.5 million.

The offer represents a 19.2% premium to the closing price of Duff & Phelps shares on December 28. The transaction is expected to close in the first half of 2013.

Brady Corporation Acquires Precision Dynamics

Brady Corporation acquired Precision Dynamics Corporation from Water Street Healthcare Partners for $300 million.

Clean Harbors Completes Acquisition of Safety-Kleen

Clean Harbors completed its acquisition of Safety-Kleen, Inc. in an all-cash transaction valued at approximately $1.25 billion.

The transaction was financed through the combination of $289 million of existing cash, $370 million in net proceeds from its recently completed follow-on offering of common stock and $591 million in net proceeds from its recently completed Senior Notes offering.

Earnings Review

Cal-Maine Foods Inc. ((CALM)), the shell eggs produce reported second quarter net sales rose to $328.9 million compared with net sales of $290.4 million a year-ago quarter. Net income in the quarter fell to $14.3 million or 60 cents per basic share compared with net income of $23.3 million or 97 cents per basic share last year.