Shire to Acquire Baxalta for $32 B, Apollo Education Soar

Mukesh Buch
11 Jan, 2016
New York City

Baxalta agreed to be acquired by Shire for $32 billion. Apollo Education net swung to a loss. Schulman profit tumbled 61%. Arch Coal tumbled after filing for chapter 11 bankruptcy protection. IHS agreed to acquire Oil Price Information Service for $650 million.

[R]11:40 AM New York – Baxalta agreed to be acquired by Shire for $32 billion. Apollo Education net swung to a loss. Schulman profit tumbled 61%. Arch Coal tumbled after filing for chapter 11 bankruptcy protection. IHS agreed to acquire Oil Price Information Service for $650 million.[/R]

Tollbooth Index increased 54.56 or 0.5% to 10,177.01.

Earnings Review

Apollo Education Group Inc ((APOL)) surged 14.3% or 93 cents to $7.52 after the private education provider reported revenues in the first-quarter ending in November plunged 18% from a year ago to $586 million.

Net in the quarter swung to a loss of $60.8 million or 56 cents per diluted share compared to profit of $33.8 million or 31 cents per share from the same quarter last year.

A Schulman Inc ((SHLM)) plunged 8.9% or $2.57 to $26.04 after the plastic formulations services supplier stated net sales in the first-quarter ending in November jumped 5.6% from a year ago to $649.2 million.

Net income in the quarter tumbled 60.6% to $5.2 million or 18 cents per diluted share compared to $13.2 million or 45 cents per share from the same quarter last year.

The company reaffirmed its diluted earnings per share estimate for the year in the range of $2.80 to $2.85.

American Apparel Inc surged 38% to 0.04 cents after the Hagan Capital Group and Silver Creek Capital Partners offered to acquire bankrupt teen apparel retailer for about $300 million.

Arch Coal Inc ((ACI)) tumbled 50.6% to 41 cents after the coal producer filed for chapter 11 bankruptcy protection to trim the $4.5 billion in debt from its balance sheet.

Baxalta Inc ((BXLT)) gained 1.5% or 58 cents to $40.57 after the drugs maker agreed to be acquired by the Ireland-based London-listed rival Shire Plc for $32 billion cash and stock offer.

Under the terms, the company will exchange for each Baxalta share $18 in cash and 0.1482 Shire’s American Depositary Receipt, based on total value of $45.57 per share prices as of January 8.

The transaction is expected to close in the mid-2016.

Computer Services, Inc ((CSVI)), the information technology solutions provider said revenues in the third-quarter ending in November slumped 3.3% from a year ago to $54.1 million.

Net income in the quarter declined 13.8% to $6.2 million or 44 cents per diluted share compared to $7.2 million or 51 cents per share from the same quarter last year.

IHS Inc ((IHS)) gained 35 cents to $110.35 after the analytical and information services provider agreed to acquire Oil Price Information Service provider for about $650 million.

ResMed Inc ((RMD)) rose 12 cents to $52.24 after the medical products maker agreed to buy privately held Inova Labs for undisclosed financial terms.