AmerisourceBergen to Acquires MWI Veterinary, SanDisk Plunges 12%

Mukesh Buch
12 Jan, 2015
New York City

AmerisourceBergen agreed to acquire MWI Veterinary Supply for about $2.5 billion. Kellogg plans to acquire 86% stake in Egypt-based biscuit maker. SanDisk tumbled on weak forecast. Tekmira Pharma agreed to acquire OnCore Biopharma to form new company.

[R]11:50 AM New York – AmerisourceBergen agreed to acquire MWI Veterinary Supply for about $2.5 billion. Kellogg plans to acquire 86% stake in Egypt-based biscuit maker. SanDisk tumbled on weak forecast. Tekmira Pharma agreed to acquire OnCore Biopharma to form new company.[/R]

Tollbooth Index fell 0.4% or 43.63 to 9,879.57.

Earnings Review

AmerisourceBergen Corp rose 21 cents to $93.21 after the pharmaceutical products retailer agreed to acquire MWI Veterinary Supply Inc, animal health distribution group for about $2.5 billion or $190 per share in cash.

The transaction is expected to close before the end of March.

Shares of MWI Veterinary Supply, Inc surged 8.6% to $190.80.

Kellogg Company ((K)) slipped 19% or 68 cents to $65.75 after the cereal maker plans to acquire 85.93% stake in Egypt-based Bisco Misr, packaged biscuits company based upon the number of shares tendered to the company through the Egyptian Stock Exchange.

The Kellogg’s final bid offer is EGP 89.86 per share and transfer of the shares will be completed before January 18.

SanDisk Corporation ((SNDK)) plunged 12%or $11.56 to $85.42 after the data storage solution provider forecasted revenues for the fourth-quarter of about $1.73 billion, lower than the earlier range of between $1.8 billion and 1.85 billion.

The company also lowered its quarterly non-GAAP gross margin to about 45% from the previous estimate between 47% and 49%.

Tekmira Pharmaceuticals Corporation ((TKMR)) surged 37.9% or $6.02 to $21.80 after the Canada-based biopharmaceutical company agreed to acquire Pennsylvania-based OnCore Biopharma to form a new company.

The combined values of the company at about $750 million to focused on treatment of hepatitis B.

The deal was unanimously approved by the boards of both companies and the transaction is expected to close in the first-half of this year.