Great Plains and Westar in $8.6 B Deal, Medtronic Net Swings to Profit

Mukesh Buch
31 May, 2016
New York City

Great Plains Energy agreed to acquire Westar Energy for $8.6 billion. Carl Icahn confirmed a ""large position"" in Botox-maker Allergan. Bank of Nova Scotia net declined but revenues jumped. Frontline net and revenues surged. Medtronic net swung to profit.

[R]1:00 PM New York – Great Plains Energy agreed to acquire Westar Energy for $8.6 billion. Carl Icahn confirmed a ""large position"" in Botox-maker Allergan. Bank of Nova Scotia net declined but revenues jumped. Frontline net and revenues surged. Medtronic net swung to profit.[/R]

Tollbooth Index decreased 27.39 or 0.3% to 10,654.27.

Earnings Review

Bank of Nova Scotia ((BNS)) dropped 1.1% or 55 cents to $49.34 after the Canada-based diversified financial services provider said total revenues in the second-quarter ending in April advanced 10.9% from a year ago to $6.59 billion.

Net income in the quarter declined 13.6% to $1.52 billion or $1.23 per diluted share compared to $1.76 billion or $1.42 per share from the same quarter last year.

Great Plains Energy Inc ((GXP)) declined 5.2% or $1.62 to $29.38 after the power supplier and agreed to acquire rival Westar Energy Inc for $8.6 billion or total offer price of $60 per share in cash and stock with total enterprise value of about $12.2 billion, including $3.6 billion of debt.

The transaction is expected to close in the spring of 2017 with reverse breakup fee of about $380 million.

Frontline Ltd ((FRO)) soared 7.4% or 59 cents to $8.61 after the Bermuda-based shipping company reported revenues in the fourth-quarter ending in March soared 142.9% from a year ago to $227.1 million.

Net income in the quarter surged seven-fold to $78.9 million or 50 cents per diluted share compared to $11 million or 9 cents per share from the same quarter last year.

Icahn Enterprises LP ((IEP)) gained 1% or 55 cents to $54.87 after the diversified investor Carl Icahn twitted on its website that he had recently acquired a ""large position"" in Botox-maker Allergan and he is very supportive of CEO Brent Saunders.

However, Icahn, had not disclosed the details of the stake but said we have every confidence in Brent’s ability to enhance value for all Allergan shareholders.

Medtronic Plc ((MDT)) slipped 1.8% or $1.49 to $80.19 after the medical devices maker said revenues in the fourth-quarter ending on April 29 jumped 4% from a year ago to $7.57 billion.

Net in the quarter swung to profit $1.1 billion or 78 cents per diluted share compared to net loss of $0.001 million or break even per share from the same quarter last year.

Medtronic reported operating profit in the quarter surged to $1.51 billion from $373 million in the same period a year ago.