Pfizer to Buy Allergan for $160 B, GE Divests U.K. Home Loan Unit

Mukesh Buch
23 Nov, 2015
New York City

Pfizer agreed merger of Botox maker Allergan for $160 billion. GE agreed to sell its U.K.-based home loans business of $5.9 billion to consortium led by Blackstone. Brookfield agreed to support Australia-based Asciano. Jacobs Engineering net tumbled. Tyson Foods net surged.

[R]10:55 AM New York – Pfizer agreed merger of Botox maker Allergan for $160 billion. GE agreed to sell its U.K.-based home loans business of $5.9 billion to consortium led by Blackstone. Brookfield agreed to support Australia-based Asciano. Jacobs Engineering net tumbled. Tyson Foods net surged.[/R]

Tollbooth Index increased 25.91 or 0.2% to 11,054.04.

Earnings Review

Aduro BioTech Inc ((ADRO)) rose 17 cents to $29 after the clinical-stage immunotherapy company said revenues in the third-quarter ending in September surged seven-fold from a year ago to $18.7 million.

Net in the quarter swung to profit of $0.6 million or 1cent per diluted share compared to a loss of $4.7 million or $14.24 per share from the same quarter last year.

Brookfield Asset Management Inc ((BAM)) slid 5 cents to $34.29 after the Canada-based alternative asset manager agreed to support Australia-based Asciano Ltd. in its takeover bid by the domestic rail and port operator Qube Holdings Ltd.

General Electric Company ((GE)) fell 6 cents to $30.60 after the diversified industrial conglomerates agreed to sell its U.K.-based home loans portfolio of $5.9 billion to an investment consortium led by Blackstone, TPG Special Situations Partners and CarVal Investors.

The transaction is expected to close by the end of the year and terms and condition were not disclosed.

Jacobs Engineering Group Inc ((JEC)), the construction and engineering services provider said revenues in the fourth-quarter ending on October 2 dropped 3.1% from a year ago to $3.12 billion.

Net income in the quarter tumbled 65.3% to $29.9 million or 24 cents per diluted share compared to $86.1 million or 65 cents per share from the same quarter last year.

Jacobs forecasted earnings per share for the fiscal 2016 in the range of $2.80 to $3.30.

Pfizer Inc ((PFE)) slumped 2.8% or 89 cents to $31.29 after the biopharmaceutical group agreed on a merger agreement with the Ireland-based Botox maker Allergan Plc for about $160 billion.

The boards of directors of both the companies approved the deal on Sunday.

Under the terms, transaction is currently valued at $363.63 per Allergan share for a total enterprise value of about $160 billion, based on the closing price of Pfizer stock on November 20.

The combined company estimated to generate annual operating cash flow of about $25 billion in early 2018.

The stockholders of Pfizer will hold approx 56% of the combined company and rest of 44% will be hold by the shareholders of Allergan.

The transaction is expected to close in the second-half of 2016.

Tyson Foods, Inc ((TSN)), the food processing company reported sales in the fourth-quarter ending on October 3 jumped 3.9% from a year ago to $10.51 billion.

Net income in the quarter surged 88.3% to $258 million or 63 cents per diluted share compared to $137 million or 35 cents per share from the same quarter last year.