Chiquita Agrees to $1.3 B Deal, Valeant Prepared to Raise Allergan Offer

Mukesh Buch
27 Oct, 2014
New York City

Chiquita agreed to be acquired by a Brazil-based Cutrale-Safra group for $1.3 billion. Merck profit declined 20% on 4% decrease in revenues. Precision Drilling net surged 80%. Roper net rose 14%. Seagate net plunged 11%. Valeant raised offer to $200 per share to Allergan.

[R]12:25 PM New York – Chiquita agreed to be acquired by a Brazil-based Cutrale-Safra group for $1.3 billion. Merck profit declined 20% on 4% decrease in revenues. Precision Drilling net surged 80%. Roper net rose 14%. Seagate net plunged 11%. Valeant raised offer to $200 per share to Allergan.[/R]

Tollbooth Index rose 0.2% or 15.58 to 9,289.90.

Earnings Review

Chiquita Brands International Inc ((CQB)) rose 12 cents to $14.16 after the banana producer agreed to be acquired by a Brazil-based orange-juice maker Cutrale-Safra group for $14.50 a share in cash.

The transaction is valued at about $1.3 billion, including the assumption of Chiquita’s net debt.

The transaction is expected to close by the end of this year or early 2015.

Merck & Co., Inc ((MRK)) slipped 1.8% or $1.03 or $56.58 after the drug maker reported sales in the third-quarter ending in September dropped 4.3% to $10.56 billion from a year ago period.

Net income in the quarter declined 20% to $895 million or 31 cents a diluted share compared to $1.12 billion or 38 cents from a same quarter last year.

Precision Drilling Corp ((PDS)) plunged 7.2% or 64 cents to $8.21 after the contract drilling services provider said revenue in the third-quarter ending in September soared 19.7% to $584.6 million from a year ago period.

Net income in the quarter surged 79.6% to $52.8 million or 18 cents a diluted share compared to $29.4 million or 10 cents from a same quarter last year.

Roper Industries, Inc ((ROP)) fell 41 cents to $150.77 after the industrial machinery and equipment maker stated revenue in the third-quarter ending in September jumped 7% to $884 million from a year ago period.

Net earnings in the quarter climbed 14.1% to $155.5 million or $1.54 a diluted share compared to $136.3 million or $1.36 from a same quarter last year.

The company revised its full-year adjusted earnings per share guidance between $6.32 and $6.38 and adjusted earnings per share for the fourth-quarter in the range of $1.75 to $1.81.

Seagate Technology PLC ((STX)) increased 52 cents to $58.88 after the Ireland-based data storage products maker reported revenue in the first-quarter ending on October 3 climbed 8.6% to $3.79 billion from a year ago period.

Net income in the quarter plunged 10.8% to $381 million or $1.13 a diluted share compared to $427 million or $1.16 from a same quarter last year.

Tenneco Inc ((TEN)) tumbled 10.3% or $5.64 to $48.92 after the automobile parts maker said total revenue in the third-quarter ending in September rose 6.1% to $2.08 billion from a year ago period.

Net income in the quarter surged six-fold to $78 million or $1.27 a diluted share compared to $12 million or 19 cents from a same quarter last year.

Valeant Pharmaceuticals Intl Inc ((VRX)) gained 91 cents to $130.04 after the pharmaceutical company said it is prepared to increase offer to at least $200 per share for Allergan, Inc.