Cargill Rejects Nutreco Deal, Walgreen Profit Climbs

Mukesh Buch
23 Dec, 2014
New York City

Cargill rejected acquisition plan for Nutreco NV. Radian Group agreed to sell financial-guaranty business to Assured Guaranty for $810 million. Steelcase net declined 49% after revenues barely rose 2%. Sierra agreed to acquire Wireless Maingate. Walgreen profit climbed 16%.

[R]12:10 PM New York – Cargill rejected acquisition plan for Nutreco NV. Radian Group agreed to sell financial-guaranty business to Assured Guaranty for $810 million. Steelcase net declined 49% after revenues barely rose 2%. Sierra agreed to acquire Wireless Maingate. Walgreen profit climbed 16%.[/R]

Tollbooth Strategy Index gained 0.6% or 66.07 to 10,152.52 and for the year advanced to 13.4%.

The index has beaten the S&P 500 index in thirteen of the last fifteen years.

Earnings Review

Cargill, Inc, the private agro-food and poultry products trader said it is not interested in acquiring Netherlands-based animal-feed supplierNutreco NV with an offer of about $3.79 billion or €3.1 billion.

Radian Group Inc ((RDN)) climbed 3.3% or 53 cents to $16.81 after the residential mortgage insurance provider agreed to sell its financial-guaranty business Radian Asset Assurance Inc to Assured Guaranty Ltd. for $810 million in cash.

Gilead Sciences, Inc ((GILD)) declined 5.3%or $4.94 to $87.96 after Express Scripts said it will exclude its hepatitis C treatments, Sovaldi and Harvoni products from its National Preferred Formulary that starts from New Year.

Steelcase Inc ((SCS)) slipped 1.2% or 21 cents to $17.70 after the business support provider said revenues in the third-quarter ending on November 28 increased 1.9% to $800 million form a year ago period.

Net income in the quarter declined 48.7% to $11.8 million or 9 cents a diluted share compared to $23 million or 18 cents from a same quarter last year.

Sierra Wireless, Inc ((SWIR)) soared 6.6% or $2.98 to $48.40 after the Canada-based wireless network service provider agreed to acquire Wireless Maingate AB for about $90 million in cash.

The transaction is expected to close in February 2015.

Walgreen Company ((WAG)) gained 1.4% or 92 cents to $75.15 after the retail drugstore chain reported sales in the first-quarter ending in November jumped 6.7% to $19.6 billion form a year ago period.

Total comparable store sales in the quarter climbed 5.7% and front-end comparable store sales increased 1.5%. While customer traffic in comparable stores dropped 2.7% but basket size advanced 4.2%.

Net earnings in the quarter soared 16.4% to $809 million or 85 cents a diluted share compared to $695 million or 72 cents from a same quarter last year.