Applied Materials, Tokyo Electron Call Off Merger

Mukesh Buch
27 Apr, 2015
New York City

Applied Materials and Japan-based Electron agreed to terminate $10 billion merger agreement. iGATE jumped after CapGemini proposed a $4 billion merger. Laboratory Corp net tumbled 99%. Mylan rejected bid from Teva Pharma and reaffirmed its $33 billion Perrigo bid.

[R]12:50 PM New York – Applied Materials and Japan-based Electron agreed to terminate $10 billion merger agreement. iGATE jumped afterCapGemini proposed a $4 billion merger. Laboratory Corp net tumbled 99%. Mylan rejected bid from Teva Pharma and reaffirmed its $33 billion Perrigo bid.[/R]

Tollbooth Index edged up 0.02% or 2.33 to 10,920.56.

Earnings Review

Applied Materials, Inc ((AMAT)) plunged 7.2% or $1.56 to $20.24 after the electronic equipment maker and Japan-based Electron Limited announced that they agreed to terminate their $10 billion merger agreement with no termination fees payable by either part.

Separately, the company’s board approved new share repurchase program up to $3 billion in next three years.

iGATE Corp ((IGTE)) climbed 3.4% or $1.58 to $47.42 after the France-based IT services company Cap Gemini agreed to acquire the company for $4 billion.

The combined group revenue for fiscal 2015 is estimated by the company of about $13.58 billion.

The two India-American co-founders of the company stand to make $1 billion. Co-chairmen Ashok Trivedi holds 12.81% and Sunil Wadhwani controls 12.99% and collectively stakes are worth $1 billion.

iGATE employs more than 24,000 people in India and globally about 33,000.

Laboratory Corp. of America Holdings ((LH)) fell 19 cents to $126.74 after the clinical laboratory services provider said net revenues in the first-quarter ending in March soared 23.9% to $1.77 billion from a year ago period.

Net income in the quarter tumbled 99.4% to $0.7 million or 1 cent per diluted share compared to $113.1 million or $1.31 from the same quarter last year.

Mylan NV ((MYL)) slumped 3.5% or $2.67 to $73.39 after the pharmaceutical company said its board unanimously rejected unsolicited bid from Teva Pharmaceutical Industries Ltd but remains committed to acquire Perrigo Co for about $33 billion.

On Friday, Mylan raised its offer from $28.9 billion to $33 billion.

Marvell Technology Group Ltd ((MRVL)) slid 8 cents to $14.23 after the Bermuda-based chipmaker forecasted revenue for the first-quarter of fiscal 2016 between $710 million and $740 million from the earlier estimated range between $810 million to $830 million.

The company will update its current first-quarter earnings call on May 21.

Mercury General Corporation ((MCY)) declined 6.1% or $3.58 to $54.72 after the automobile insurer reported total revenues in the first-quarter ending in March dropped 2.4% to $744.55 million from a year ago period.

Net income in the quarter plunged 64% to $26.2 million or 47 cents per diluted share compared to $72.7 million or $1.32 from the same quarter last year.

Roper Industries, Inc ((ROP)) jumped 2.3% or $3.84 to $173.74 after the medical and scientific imaging products maker reported revenues in the third-quarter ending in March climbed 3.7% to $865.3 million from a year ago period.

Net income in the quarter soared 5.8% to $155.8 million or $1.54 per diluted share compared to $147.2 million or $1.46 from the same quarter last year.

Roper forecasted adjusted earnings for the second-quarter in a range of $1.59 to $1.64 per share.

The company lifted adjusted earnings per share forecast for the fiscal 2015 between $6.75 and $6.95 from earlier range of $6.70 to $6.94 per share.

Tennant Company ((TNC)) climbed 4.9% or $3.27 to $70 after the cleaning products provider said net sales in the first-quarter ending in March increased 0.8% to $185.7 million from a year ago period.

Net income in the quarter declined 13.3% to $5 million or 27 cents per diluted share compared to $5.8 million or 31 cents from the same quarter last year.

Tenneco Inc ((TEN)) jumped 3.3% or $1.88 to $59.16 after the clean air products maker stated total revenues in the first-quarter ending in March slipped 3.3% to $2.02 billion from a year ago period.

Net income in the quarter dropped 3.6% to $54 million or 88 cents per diluted share compared to $56 million or 91 cents from the same quarter last year.

For the fiscal 2015, Tenneco reaffirmed revenue guidance between 5% and 8%.