TNT Seeks a Deal with FedEx, Axalta Coating Sell 8.7% to Berkshire

Mukesh Buch
07 Apr, 2015
New York City

Berkshire Hathaway agreed to acquire 8.7% stake in Axalta Coating from Carlyle Group. Greenbrier net surged more than three-fold. Canada divests 73.4 million shares of General Motors. FedEx offered $4.8 billion for TNT, two years after deal with UPS was scuttled. Intl Speedway net tumbled.

[R]12:40 PM New York – Berkshire Hathaway agreed to acquire 8.7% stake in Axalta Coating from Carlyle Group. Greenbrier net surged more than three-fold. Canada divests 73.4 million shares of General Motors. FedEx offered $4.8 billion for TNT, two years after deal with UPS was scuttled. Intl Speedway net tumbled.[/R]

Tollbooth Index gained 0.3% or 30.10 to 10,530.14.

Earnings Review

Axalta Coating Systems Ltd ((AXTA)) soared 6.9% or $1.97 to $30.30 after the coatings and paint maker said Berkshire Hathaway Inc agreed to acquire 8.7% or a total of 20 million shares at an average price of $28 per share or about $560 million from the leverage buyout firm Carlyle Group LP.

AZZ Inc ((AZZ)) rose 9 cents to $47.07 after the electrical equipment maker lowered its revenues guidance for fiscal 2015 from the previous estimated range between $825 million and $850 million while earnings per share are expected to be ahead of the forecasted range between $2.40 and $2.60.

For the fiscal 2016, the company reaffirmed that revenue in the range of $875 million to $925 million and earnings per share between $2.75 and $3.25.

FedEx Corporation climbed 4.3% to $173.85 after the air-freight and logistic company plans to acquire The Netherlands-based express delivery company for about €4.4 billion or $4.8 billion.

FedEx offered €8 per share in cash, which represents a premium of 33% over the closing price of April 2 and a premium of 42% on last three-month average price.

FedEx and TNT Express anticipated that the deal will close in the first-half of 2016.

Greenbrier Companies Inc ((GBX)) climbed 4.6% or $2.77 to $63.37 after the railroad freight car equipment maker said total revenues in the second-quarter ending in February soared 25.5% to $630.1 million from a year ago period.

Net income in the quarter surged 223.1% to $50.4 million or $1.57 per diluted share compared to $15.6 million or 50 cents from the same quarter last year.

General Motors Company ((GM)) dropped 1.8% or 65 cents to $36.01 after the Canada government agreed to divest 73.4 million shares worth about $2.69 billion in a deal arranged by Goldman Sachs.

International Speedway Corp ((ISCA)) gained 32 cents to $34.12 after the professional sports events organizer stated total revenues in the first-quarter ending in February jumped 3.6% to $136.6 million from a year ago period.

Net income in the quarter tumbled 25.1% to $14.9 million or 32 cents per diluted share compared to $19.9 million or 43 cents from the same quarter last year.

Schnitzer Steel Industries, Inc ((SCHN)) jumped 2.9% or 46 cents to $16.49 after the metal recycler said revenues in the second-quarter ending in February declined 29.9% to $439.2 million from a year ago period.

Net in the quarter swung to a loss of $195.6 million or $7.24 per diluted share compared to profit of $1.79 million or 7 cents from the same quarter last year.