Newell Offered $15 B for Jarden, Norfolk Rejects Revised CP Offer

Mukesh Buch
14 Dec, 2015
New York City

Newell Rubbermaid is in talk to acquire Jarden Corp for $15 billion. Orchestra Premaman agreed to buy 13% stake in Destination Maternity. Norfolk Southern rejected a revised offer from Canadian Pacific Railway.

[R]11:15 AM New York – Newell Rubbermaid is in talk to acquire Jarden Corp for $15 billion. Orchestra Premaman agreed to buy 13% stake in Destination Maternity. Norfolk Southern rejected a revised offer from Canadian Pacific Railway.[/R]

Tollbooth Index edged down 6.27 to 10,742.14.

Earnings Review

Destination Maternity Corp ((DEST)) rose 1 cent to $9.01 after the France-based children cloths retailer Orchestra Premaman SA agreed to acquire 13% stake worth about $25 million in the maternity apparel retailer.

iKang Healthcare Group Inc ((KANG)) increased 2.7% or 52 cents to $19.92 after the China-focused healthcare solutions provider was approached by China-based rival Jiangsu Sanyou Group Co., Ltd with a revised offer of $23.50 per share.

Norfolk Southern Corp ((NSC)) rose 51 cents to $89.97 after the transportation services provider rejected a revised offer of $88.52 per share from Canadian Pacific Railway Ltd saying """"continues to be grossly inadequate.""""

Earlier on November 17, Canadian Pacific offered for $94.94 per share.

Newell Rubbermaid Inc ((NWL)) plunged 8.5% or $3.85 to $41.44 after the consumer and commercial products maker said it would acquire its rival Jarden Corp for more than $15 billion in cash and stock to expand its business in food, beverage, baby products and kitchen appliances.

Under the terms, shareholders of Jarden will receive $21 in cash and 0.862 shares of Newell, representing 14% premium to Jarden''s closing price of Friday.

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

Jarden Corporation stock jumped 4.9% to $55.25.

Quanex Building Products Corporation ((NX)) jumped 3.9% or 71 cents to $18.58 after the building products supplier said net sales in the fourth-quarter ending in October soared 19.4% from a year ago to $195.5 million.

Net income in the quarter doubled to $9.9 million or 29 cents per diluted share compared to $4.9 million or 5 cents per share from the same quarter last year.