Krispy Goes Private, Charter Wins Regulatory Approval Time Warner Cable

Mukesh Buch
09 May, 2016
New York City

Charter Communications won final clearance to acquire Time Warner Cable. Krispy Kreme agreed to be taken private by Germany-based JAB. Freeport agreed to sell stake in TF Holdings to China-based Molybdenum. Drew net jumped 79%. HCP plans to spin off its HCR ManorCare portfolio.

[R]11:50 AM New York – Charter Communications won final clearance to acquire Time Warner Cable. Krispy Kreme agreed to be taken private by Germany-based JAB. Freeport agreed to sell stake in TF Holdings to China-based Molybdenum. Drew net jumped 79%. HCP plans to spin off its HCR ManorCare portfolio.[/R]

Tollbooth Index increased 50.68 or 0.5% to 10,589.34.

Earnings Review

Charter Communications, Inc ((CHTR)) gained $1.93 to $214.85 on Friday, the cable services provider won final U.S. clearance to acquire second-largest U.S. cable operator Time Warner Cable Inc and Bright House Networks LLC from the Federal Communications Commission.

Charter valued the deal for Time Warner Cable at about $56.7 billion, excluding debt and acquisition of Bright House of about $10.4 billion.

The U.S. Justice Department gave antitrust approval of acquisitions with conditions on April 25 and on Friday FCC said that ""order detailing the commission’s reasoning and the conditions will be issued in the few days.""

Drew Industries, Inc ((DW)) soared 9.1% or $5.74 to $70.30 after the recreational products maker said net sales in the first-quarter ending in March advanced 17% from a year ago to $423 million.

Net income in the quarter jumped 79.1% to $36 million or $1.45 per diluted share compared to $20.1 million or 82 cents per share from the same quarter last year.

Freeport-McMoRan Inc ((FCX)) plunged 9.2% or $1.08 to $10.71 after the integrated mining company agreed to sell its stake in TF Holdings Limited to China-based Molybdenum Co., Ltd for about $2.65 billion in cash.

The mining company also agreed to sell its interest in Freeport Cobalt to CMOC, including Kokkola Cobalt Refinery in Finland worth about $100 million and Kisanfu Exploration project in Democratic Republic of Congo for about $50 million.

HCP, Inc ((HCP)) jumped 5.5% or $1.90 to $36.45 after the real estate developer reported total revenues in the first-quarter ending in March jumped 4.9% from a year ago to $640.8 million.

Net in the quarter swung to profit $115.8 million or 25 cents per diluted share compared to net loss of $240.9 million or 52 cents per share from the same quarter last year.

Separately, the company said its plans to spin off its HCR ManorCare portfolio of skilled-nursing and assisted-living assets as well as other skilled nursing assets into a separately traded real-estate investment trust ""SpinCo.""

SpinCo intends to apply for listing on the New York Stock Exchange.

Krispy Kreme Doughnuts ((KKD)) surged 24.3% or $4.10 to $20.97 after the doughnuts, beverages, treats and packaged sweets retailer agreed to be taken private by Germany-based investment firm JAB Holding Co for $21 or about US$1.35 billion in cash.

The Medicines Company ((MDCO)) slipped 1.7% or 60 cents to $35.63 after the biopharmaceutical company said total net revenues in the third-quarter ending in March tumbled 54.3% from a year ago to $50.3 million.

Net in the quarter swung to a loss of $92.4 million or $1.34 per diluted share compared to profit of $5.04 million or 8 cents per share from the same quarter last year.

Separately, the generic products maker agreed to divest its non-core cardiovascular assets to Chiesi USA, Inc. and its parent company Chiesi Farmaceutici S.p.A. for up to $792 million.

The transaction is expected to close early in the third quarter of 2016.

Sotheby’s ((BID)) slumped 3.6% or 97 cents to $26.29 after the art auction operator stated total revenues in the third-quarter ending in March plummeted 31.6% from a year ago to $106.5 million.

Net in the quarter swung to a loss of $25.9 million or 41 cents per diluted share compared to profit of $5.2 million or 7 cents per share from the same quarter last year.

Teva Pharmaceutical Industries Ltd ((TEVA)) increased 3.8% or $1.93 to $52.20 after the Israel-based pharmaceutical company reported revenues in the first-quarter ending in March fell 3% from a year ago to $4.81 billion.

Net income in the quarter surged 27.8% to $570 million or 62 cents per diluted share compared to $446 million or 52 cents per share from the same quarter last year.

Tyson Foods, Inc ((TSN)) rose 2.2% or $1.48 to $68.73 after the food processing company stated sales in the second-quarter ending on April declined 8.1% from a year ago to $9.17 billion.

Net income in the quarter soared 39.4% to $432 million or $1.10 per diluted share compared to $310 million or 75 cents per share from the same quarter last year.

Tribune Publishing Co declined 3.3% or 38 cents to $11.23 after the daily and weekly print publisher said that its board of directors adopted a limited duration Shareholder Rights Plan also known as ""poison pill,"" in response to a recent $815 million unsolicited acquisition proposal from Gannett Co., Inc.