Qualcomm Acquires CSR for $2.5 B, AbbVie Rethinks Shire Merger

Mukesh Buch
15 Oct, 2014
New York City

AbbVie board is scheduled to discuss Shire merger after U.S. tax law changes. Bank of America net swung to a loss. BlackRock net surged 26%. Charles Schwab profit jumped 11%. CSX net soared 12%. Intel profit surged 12%. Qualcomm agreed to buy CSR for $2.5 billion. St. Jude Medical net plunged 9%.

[R]12:25 PM New York – AbbVie board is scheduled to discuss Shire merger after U.S. tax law changes. Bank of America net swung to a loss. BlackRock net surged 26%. Charles Schwab profit jumped 11%. CSX net soared 12%. Intel profit surged 12%. Qualcomm agreed to buy CSR for $2.5 billion. St. Jude Medical net plunged 9%.[/R]

Tollbooth Index dropped 1.3% or 117.34 to 8,832.54.

Earnings Review

AbbVie Inc ((ABBV)) fell 28 cents to $53.85 after the drug maker said its board will meet to reconsider the $54.7 billion or £32 billion merger with the U.K.-based Shire Plc after changes in the U.S. tax regulations.

The company’s board will meet on Monday to decide to withdraw or modify its recommendation on deal.

Shares of Shire Plc tumbled 27.5% to 3,725 pence.

Bank of America Corp ((BAC)) declined 4% or 64 cents to $15.88 after the bank reported total revenue in the third-quarter ending in September dropped 4.5% to $21.2 billion from a year ago period.

Net in the quarter swung to a loss of $70 million or 1 cent a diluted share compared to profit of $2.22 billion or 20 cents from a same quarter last year.

BlackRock, Inc ((BLK)) slipped $2.09 to $304.65 after the investment company said total revenue in the third-quarter ending in September soared 15% to $2.85 billion from a year ago period.

Net income in the quarter surged 26% to $917 million or $5.37 a diluted share compared to $730 million or $4.21 from a same quarter last year.

Charles Schwab Corp ((SCHW)) slipped 2.8% or 72 cents to $24.56 after the investment bank reported net revenue in the third-quarter ending in September climbed 13% to $1.55 billion from a year ago period.

Net income in the quarter jumped 11% to $321 million or 24 cents a diluted share compared to $290 million or 22 cents from a same quarter last year.

CSX Corporation ((CSX)) dropped 2.9% or 93 cents to $31.68 after the transportation service provider reported revenue in the third-quarter ending on September 26 jumped 8% to $3.22 billion from a year ago period.

Net earnings in the quarter soared 12% to $509 million or 51 cents a diluted share compared to $455 billion or 45 cents from a same quarter last year.

Intel Corporation ((INTC)) plunged 4.3% or $1.36 to $30.79 after the microprocessor and chipset maker reported revenue in the third-quarter ending in September soared 8% to $14.6 billion from a year ago period.

Net income in the quarter surged 12% to $3.3 billion or 66 cents a diluted share compared to $3 billion or 58 cents from a same quarter last year.

KeyCorp ((KEY)) plunged 6.9% or 90 cents to $11.99 after the financial service provider said total revenue in the third-quarter ending in September declined 4% to $998 million from a year ago period.

Net income in the quarter tumbled 23.3% to $204 million or 23 cents a diluted share compared to $266 million or 29 cents from a same quarter last year.

Qualcomm Inc ((QCOM)) fell 39 cents to $71.49 after the communication products maker agreed to acquire U.K.-based CSR plc a Bluetooth and GPS chipmaker for $2.5 billion or £1.6 billion in cash. The transaction is expected to close by the end of summer in next year.

Earlier, CSR rejected offer from semiconductor company Microchip Technology Inc.

St. Jude Medical Inc ((STJ)) slumped 4.1% or $2.44 to $57.47 after the medical devices maker said net sales in the third-quarter ending on September 27 jumped 3% to $1.37 billion from a year ago period.

Net earnings in the quarter plunged 9.2% to $238 million or 82 cents a diluted share compared to $262 billion or 90 cents from a same quarter last year.