Activist Ackman Acquires Stake in Mondelez, CF Ind in $6 B Deal

Mukesh Buch
06 Aug, 2015
New York City

Activist investor controlled hedge fund manager Ackman acquired 7.5% stake in Mondelez worth $5.5 billion. CF Ind agreed to acquire OCI businesses for $6 billion. Apache net swung to a loss. Costco comparable store sales were flat. Icahn Entp net tumbled 57%.

[R]1:20 PM New York – Activist investor controlled hedge fund manager Ackman acquired 7.5% stake in Mondelez worth $5.5 billion. CF Ind agreed to acquire OCI businesses for $6 billion. Apache net swung to a loss. Costco comparable store sales were flat. Icahn Entp net tumbled 57%.[/R]

Tollbooth Index dropped 145.03 or 1.3% to 10,742.92.

Earnings Review

Apache Corporation ((APA)) gained 1.2% or 51 cents to $44.94 after the oil, and gas explorer said total revenues in the second-quarter ending in June plunged 39.8% to $1.98 billion form a year ago period.

Net in the quarter swung to a loss of $5.6 billion or $14.83 per diluted share compared to profit of $505 million or $1.31 from the same quarter last year.

Buckle Inc ((BKE)) tumbled 8.1% or $3.68 to $41.65 after the casual apparel, footwear and accessories retailer said comparable store sales for the four weeks ending on August 2, plunged 8.1% and net sales declined 6.7% to $73.7 million from net sales of $79 million in a year ago period.

Costco Wholesale Corporation ((COST)) fell 49 cents to $146.40 after the discount stores operator reported net sales for the month of July, the four weeks ending on August 2, rose 1% to $8.64 billion and comparable store sales were flat.

The U.S. comparable store sales increased 3% while comparable store sales at international declined 10%.

CF Industries Holdings, Inc ((CF)) soared 5.4% or $3.30 to $64.92 after the fertilizer products maker agreed to acquire Netherlands-based infrastructure developer OCI NV’s North American and European plants for about $6 billion, including the assumption debt of about $2 billion.

The transaction is expected to close in 2016.

Separately, the company reported net sales in the second-quarter ending in June declined 10.9% to $1.31 billion form a year ago period.

Net income in the quarter soared 12.6% to $351.9 million or $1.49 per diluted share compared to $312.6 million or $1.22 from the same quarter last year.

Duke Energy Corp ((DUK)) slipped 39 cents to $73.60 after the energy company stated total revenues in the second-quarter ending in June fell 2.1% to $5.59 billion form a year ago period.

Net income in the quarter declined 10.8% to $543 million or 78 cents per diluted share compared to $609 million or 86 cents from the same quarter last year.

Icahn Enterprises LP ((IEP)) fell 75 cents to $77.20 after the diversified investment company said revenues in the second-quarter ending in June plunged 21.9% to $5 billion form a year ago period.

Net income in the quarter plummeted 56.6% to $212 million or $1.68 per diluted share compared to $489 million or $4.06 from the same quarter last year.

L Brands Inc ((LB)) plunged 4.3% or $3.63 to $80.86 after the specialty retailer said net sales for the month of July, the four weeks ending on August 2, increased 3% to $759.5 million and comparable store sales jumped 3%.

For the quarter, the company reported net sales increased 3% to $2.77 billion and comparable store sales climbed 4%.

The retailer lifted earnings per share estimate between 66 cents and 68 cents from earlier forecasted range of 60 cents to 65 cents.

New York Times Co ((NYT)) plummeted 4% or 54 cents to $12.65 after the print media company said total revenues in the second-quarter ending in June slid 1.5% to $382.89 million form a year ago period.

Net income in the quarter surged 78.5% to $16.40 million or 10 cents per diluted share compared to $9.19 million or 6 cents from the same quarter last year.

Mondelez International Inc ((MDLZ)) gained 27 cents to $46.55 after the activist investor Bill Ackman’s Pershing Square Capital Management acquired 7.5% stake, valued $5.5 billion in the Cadbury chocolate and oreo cookies maker.

Stein Mart, Inc ((SMRT)) slumped 2.7% or 28 cents to $10.20 after the specialty stores operator said net sales for the month of July, the four weeks ending on August 2, increased 1.8% to $76.6 million from $75.3 million in a year ago month and comparable store sales in the month edged up 0.2%.

Teradata Corporation ((TDC)) tumbled 14.8% or $5.37 to $30.90 after the analytic data platforms provider said total revenues in the second-quarter ending in June climbed 8% to $623 million form a year ago period.

Net in the quarter swung to a loss of $265 million or $1.87 per diluted share compared to profit of $96 million or 60 cents from the same quarter last year.