Duke Energy, Pep Boys, Western Refining Deals, Xerox Swings to Loss

Mukesh Buch
26 Oct, 2015
New York City

Duke Energy agreed to acquire Piedmont Natural Gas for $4.9 billion. Pep Boys agreed to be acquired by Japan-based Bridgestone. General Atlantic agreed to acquire 21.6% stake in India-based IIFL. Laboratory Corp net soared 11%. Roper profit jumped 3%. Xerox net swung to a loss.

[R]2:00 PM New York – Duke Energy agreed to acquire Piedmont Natural Gas for $4.9 billion. Pep Boys agreed to be acquired by Japan-based Bridgestone. General Atlantic agreed to acquire 21.6% stake in India-based IIFL. Laboratory Corp net soared 11%. Roper profit jumped 3%. Xerox net swung to a loss.[/R]

Tollbooth Index edged up 6.15 to 10,939.52.

Earnings Review

Check Point Software Technologies Ltd ((CHKP)) gained 1.2% or 88 cents to $81.31 after the information technology provider said revenues in the third-quarter ending in September advanced 9% from a year ago to $404 million.

Net income in the quarter jumped 4.2% to $167.7 million or 92 cents per diluted share compared to $161 million or 84 cents from the same quarter last year.

Duke Energy Corp ((DUK)) dropped 2.6% or $1.90 to $71.84 after the energy company agreed to acquire natural gas distributor Piedmont Natural Gas Inc for about $4.9 billion in cash and increase by one million natural gas customers in the Carolinas and Tennessee.

Under the terms, shareholders of Piedmont will receive $60 in cash per share, a premium of 40% on closing price of October 23. Both companies started their operation in Carolinas for more than 60 years.

Piedmont Natural Gas Company, Inc stock surged 39.5% to $58.88.

General Atlantic LLC, the privately-held equity firm agreed to acquire 21.6% stake in the India-baed IIFL Wealth Management Limited for about $173 million or ₹11.2 billion.

IIFL Wealth manages $12 billion of assets for over 8,600 clients through 150 relationship managers.

Intercontinental Exchange Inc ((ICE)) decreased 1.4% or $3.58 to $245.22 after the trading exchanges operator agreed to acquire Interactive Data Corporation, the financial data analysis and trading solutions provider for about $5.2 billion or $3.65 billion in cash and $1.55 billion in stock.

The transaction is expected to close by the end of this year.

Laboratory Corp. of America Holdings ((LH)) soared 4.3% or $4.81 to $116.76 after the clinical laboratory operator stated revenues in the third-quarter ending in September surged 46.3% from a year ago to $2.27 billion.

Net income in the quarter soared 11.4% to $152.8 million or $1.49 per diluted share compared to $137.2 million or $1.59 from the same quarter last year.

Pep Boys-Manny Moe and Jack ((PBY)) surged 23.4% or $2.84 to $14.99 after the auto parts retailer agreed to be acquired by Japan-based Bridgestone Americas Inc. for $15 per share in cash or about $835 million, a premium of 23% over the closing price Friday.

The transaction is expected to close during the first-quarter of 2016.

Roper Technologies Inc ((ROP)) jumped 2.4% or $4.30 to $181.16 after the diversified technology company said net sales in the third-quarter ending in September were flat from a year ago to $884 million.

Net income in the quarter jumped 3.1% to $160.4 million or $1.58 per diluted share compared to $155.5 million or $1.54 from the same quarter last year.

Roper lifted diluted earnings per share forecast for the year between $6.69 and $6.75, from the earlier estimated range of $6.61 to $6.75.

Starwood Capital Group, the privately-held real estate and energy infrastructure developer agreed to acquire 23,262 apartment units in 72 assets across the United States from its rival Equity Residential for about $5.37 billion.

The transaction is expected to close in the first-quarter of 2016.

Western Refining, Inc ((WNR)) fell 11 cents or $42.15 after the oil refiner and marketer offered $2.56 billion to Northern Tier Energy LP for the remaining 62% of the company it does not own.

The offer consist 15% premium to closing price of October 23, including $17.50 in cash and 0.2266 of a share.

Xerox Corporation ((XRX)) slipped 1.7% or 18 cents to $10.16 after the outsource services provider reported total revenues in the third-quarter ending in September plunged 10% from a year ago to $4.33 billion.

Net in the quarter swung to a loss of $34 million or 4 cents per diluted share compared to profit of $266 million or 22 cents from the same quarter last year.

Xerox forecasted earnings per share for the fourth-quarter in the range of 23 cents to 25 cents and for the year earnings per share between 46 cents and 52 cents.