Takeda to Acquire Ariad Pharma, Alibaba Acquires Chinese Retailer Intime

Mukesh Buch
10 Jan, 2017
New York City

Alibaba will finance $2.6 billion for a department store chain to private. Ariad Pharma agreed to be acquired by Japan-based Takeda for $5.2 billion. Schulman net tumbled 79%. Barracuda net swung to profit. Lamb Weston net soared 19%. Yahoo said most board members will step down after Verizon deal.

[R]2:10 PM New York – Alibaba will finance $2.6 billion for a department store chain to private. Ariad Pharma agreed to be acquired by Japan-based Takeda for $5.2 billion. Schulman net tumbled 79%. Barracuda net swung to profit. Lamb Weston net soared 19%. Yahoo said most board members will step down after Verizon deal is completed.[/R]

Tollbooth Index increased 14.57 to 11,333.54.

Earnings Review

Alibaba Group Holding Ltd ((BABA)) jumped 2.1% or $1.99 to $96.71 after the online marketplace operator said that it will finance as much as $2.6 billion for Hong Kong-listed department store operator Intime Retail to go private.

Ariad Pharmaceuticals, Inc ((ARIA)) surged 72.9% or $10.01 to $23.75 after the lung cancer drug developer agreed to be acquired by Japan-based anticancer and therapeutic drugs maker Takeda Pharmaceutical Co Ltd for about $5.2 billion.

Under the terms, the cancer drug maker offered $24 in cash per share, a premium of nearly 75% to the closing price of Friday.

However, Ariad faces criticism from the U. S. Congress on the recent price hikes for some cancer treatment in 2016 to $200,000 per year, an increase of more than $80,000 in last several years.

The transaction is expected to close by the end of February.

Atlassian Corporation Plc ((TEAM)) rose 9 cents to $25.14 after the software developer agreed to acquire online software developer Trello for about $425 million in cash and stock.

Atlassian with more than 65,000 large and small organizations including Citigroup, eBay, Coca-Cola, VISA, BMW and NASA will team up with Trello with more than 19 million users.

The transaction is expected to close in the third-quarter ending in March 2017.

A Schulman Inc ((SHLM)) plunged 6.3% or $2.15 to $32 after the resins supplier reported revenues in the first-quarter ending in November declined 6.2% from a year ago to $600 million.

Net income in the quarter tumbled 78.8% to $1.1 million or 4 cents per diluted share compared to the $68.4 million or 18 cents per share in the same quarter last year.

Schulman forecasted sales in the fiscal year between $2.5 billion and $2.6 billion and operating profit in the range of $225 million to $230 million and diluted earnings per share in the range of $2.08 to $2.18.

Barracuda Networks Inc ((CUDA)) increased 1.6% or 38 cents to $24.15 after the data protection solutions provider said total revenues in the third-quarter ending in November soared 11% from a year ago to $88.8 million.

Net in the quarter swung to profit $1.8 million or 3 cents per diluted share compared to the loss of $1.6 million or 3 cents per share in the same quarter last year.

Lamb Weston Holdings Inc ((LW)) jumped 3.2% or $1.17 to $38.05 after the frozen appetizer and vegetable supplier reported revenues in the second-quarter ending on November 27 advanced 7% from a year ago to $790.7 million.

Net income in the quarter soared 19% to $87.2 million or 59 cents per diluted share compared to the $73.3 million or 50 cents per share in the same quarter last year.

VOXX International Corporation ((VOXX)) plunged 8.5% or 45 cents to $4.85 after the audio and consumer accessories maker said revenues in the third-quarter ending in November advanced 3.3% from a year ago to $198.9 million.

Net income in the quarter plummeted 25.6% to $5.8 million or 24 cents per diluted share compared to the $7.8 million or 32 cents per share in the same quarter last year.

Valeant Pharmaceuticals Inc ((VRX)) soared 7.7% or $1.18 to $16.53 after the pharmaceutical and medical device maker agreed to sell three skin care brands including AcneFree, Ambi and CeraVe to the France-based cosmetic products maker L''Oreal SA for about $1.3 billion in cash.

Separately, the pharmaceutical group agreement to sell Dendreon Pharmaceuticals, Inc to the China-based Sanpower Group Co., Ltd, the privately owned conglomerate for $819.9 million in cash.

The transaction is expected to close in the first-half of 2017.

WD-40 Company ((WDFC)) tumbled 7.6% or $8.75 to $108.55 after the household products maker stated total net sales in the first-quarter ending in November dropped 4% from a year ago to $89.2 million.

Net income in the quarter fell 3% to $11.8 million or 82 cents per diluted share compared to the $12.1 million or 83 cents per share in the same quarter last year.

Yahoo! Inc ((YHOO)) advanced 2.1% or 85 cents to $42.19 and the internet content provider renamed itself as ‘Altaba’ after selling of internet business to Verizon Communications Inc for $4.8 billion, which is still uncertain and awaiting the outcome of its internal investigation on the recent two hacking incidences.

In its regulatory filing said more than half of the current board members, including Marissa Mayer, chief executive would step down.

The directors who would remain on board are Jeffrey Smith, the activist investor, Tor Braham and Catherine J. Friedman, former investment bankers; Eric Brandt, former chief financial officer of the chip maker Broadcom; and Thomas McInerney.