Redstone Withdraws Viacom-CBS Proposal; Boeing and Iran in $17 B Deal

Mukesh Buch
12 Dec, 2016
New York City

Boeing agreed to sell 80 jetliners to Iran Air at a list price of $16.6 billion. CBRE agreed to buy a shopping centre developer. Johnson Outdoors net swung to a loss but revenues soared. The Redstone family withdrew its proposed consolidation of Viacom and CBS.

[R]2:10 PM New York – Boeing agreed to sell 80 jetliners to Iran Air at a list price of $16.6 billion. CBRE agreed to buy a shopping centre developer. Johnson Outdoors net swung to a loss but revenues soared. The Redstone family withdrew its proposed consolidation of Viacom and CBS.[/R]

Tollbooth Index dropped 56.52 or 0.5% to 11,307.20.

Earnings Review

Boeing Co ((BA)) fell 42 cents to $156.05 after the commercial and military airplane maker agreed to sell 80 jetliners planes to Iran Air for about $16.6 billion at a list price of $16.6 billion, the first major agreement between the U.S. and Iran after the removal of economic sanctions on Tehran.

“The first step for the renovation of the country’s aviation fleet,” the transport minister of Iran Abbas Akhoundi said.

The first airplane under the deal is schedule for delivery in 2018.

CBRE Group, Inc ((CBG)) slipped 1.4% or 45 cents to $32.34 after the real estate services provider agreed to acquire a shopping centre developer Skye Group for undisclosed financial terms.

Johnson Outdoors Inc ((JOUT)) declined 7.4% or $3.32 to $41.54 after the outdoor recreation products maker reported revenues in the fourth-quarter ending in October soared 12.6% from a year ago to $74.9 million.

Net in the quarter swung to a loss of $2.1 million or 21 cents per diluted share compared to the profit of $1.2 million or 12 cents per share from the same quarter last year.

Panhandle Oil and Gas Inc ((PHX)) jumped 4.3% or $1.10 to $26.85 after the oil and gas explorer said total revenues in the fourth-quarter ending in October plunged 25% from a year ago to $10.2 million.

Net in the quarter swung to profit $0.7 million or 5 cents per diluted share compared to a loss of $0.9 million or 5 cents per share from the same quarter last year.

Viacom, Inc ((VIAB)) dropped 7.6% or $2.91 to $35.71 after Redstone family withdrew its proposed consolidation of Viacom Inc. and CBS Corporation.

“After careful assessment, we concluded that this is not the right time to merge the companies,” Shari Redstone and her father Sumner Redstone said.

The Redstone family controls approx 80% voting shares in both groups through its investment vehicle National Amusements Inc.