Constellium in $1.4 B Deal, Linn Energy Sells $2.3 B of Assets

Mukesh Buch
03 Oct, 2014
New York City

Constellium agreed to acquire rival Wise Metals for $1.4 billion. Iamgold agreed to sell its Niobec mine to Magris Resources for $500 million. Linn Energy agreed to sell its Oklahoma and Texas-based assets for $2.3 billion. Zimmer agreed to buy ETEX Holdings.

[R]11:45 AM New York – Constellium agreed to acquire rival Wise Metals for $1.4 billion. Iamgold agreed to sell its Niobec mine to Magris Resources for $500 million. Linn Energy agreed to sell its Oklahoma and Texas-based assets for $2.3 billion. Zimmer agreed to buy ETEX Holdings.[/R]

Tollbooth Index gained 0.6% or 23.59 to 9,282.62.

Earnings Review

Constellium NV ((CSTM)) declined 5.1% or $1.18 to $22.14 after the Netherlands-based aluminum products maker agreed to acquire its privately held rival Wise Metals Group LLC for about $1.4 billion, $455 million in cash and $945 million in assumption of debt.

Iamgold Corp ((IAG)) plunged 4.4% or 12 cents to $2.61 after the Canada-based mining company signed an agreement to sell its Niobec mine, rare earths producer to a group of companies led by Magris Resources Inc. for $500 million in cash.

Linn Energy LLC ((LINE)) slipped 1.6% or 48 cents to $28.60 after the oil and natural gas explorer agreed to sell its Oklahoma and Texas-based assets for about $2.3 billion.

The company plans to use proceeds to repay debt assumed while acquiring assets from Devon Energy Corp in a transaction that closed in August 2014.

Medtronic, Inc ((MDT)) soared 4.9% or $2.22 to $65.02 after the medical technology company plans to use approximately $16 billion in external financing to complete the acquisition of Covidien Plc cash held by its overseas subsidiaries as previously planned.

Zimmer Holdings, Inc ((ZMH)) rose 39 cents to $102.59 after the medical equipment maker agreed to acquire Massachusetts-based ETEX Holdings, Inc but financial terms of the transaction were not disclosed.