Apple, Amazon, Foxconn to Bid Toshiba

Mukesh Buch
05 Jun, 2017
New York City

Apple and Amazon are said to join Foxconn and bid for Toshiba''s memory business. Blackstone offered to buy Finland-based Sponda $1.98 billion. D.R. Horton offered to acquire 75% stake in Forestar. Herbalife declined after lowered revenues estimate but lifted earnings outlook.

[R]1:15 PM New York – Apple and Amazon are said to join Foxconn and bid for Toshiba''s memory business. Blackstone offered to buy Finland-based Sponda $1.98 billion. D.R. Horton offered to acquire 75% stake in Forestar. Herbalife declined after lowered revenues estimate but lifted earnings outlook.[/R]

Tollbooth Index edged down 2.69 to 12,391.10.

Earnings Review

Apple Inc ((AAPL)) fell 1% or $1.56 to $153.90 after the Nikkei business reported the U.S.-based mobile and media devices maker and Amazon.com Inc with Foxconn are expected to bid $28 billion for Toshiba Corp''s NAND flash memory business.

Blackstone Group LP slid 32 cents to $33.37 after the global alternative asset manager €5.19 per share or $1.98 billion or €1.76 billion for Finland-based real estate investor Sponda Oyj.

Sponda Oyj stock soared 22.5% to €5.20.

Forestar Group Inc ((FOR)) soared 12.5% or $1.78 to $15.98 after the residential real estate developer said its rival D.R. Horton Inc offered to acquire 75% stake for $16.25 per share or about $520 million.

Forestar will remain public to ensure and continued to access capital to help fund its increasing scale, D.R. Horton said.

Herbalife Ltd ((HLF)) declined 6.3% or $4.69 to $69.18 after the nutritional products maker lowered revenues forecast in the second-quarter to decline between 2% and 6% after new Federal Trade Commission rules.

However, the nutritional products maker lifted adjusted earnings forecast in the range of 95 cents to $1.15 per share from the earlier estimated range of 88 cents to $1.08.

Herbalife now must have to prove that at least 80% of its sales made outside the company''s distributor network, under the new operating guidelines with the Federal Trade Commission. The U.S. regulator recently imposed $200 million file in 2016, the largest ever by the commission.

The company claims in the filing that it has 400,000 “preferred members” who buy products at a discount and are not distributors or marketers.

Loxo Oncology Inc ((LOXO)) surged 50.5% or $24.78 to $73.73 after the genetically defined cancer products maker said larotrectinib trial demonstrated 76% in LOXO-195 confirmed objective response rate.

Puma Biotechnology Inc jumped 6.5% or $5.34 to $87.29 after the cancer treatment products maker said reported positive trial results for the treatment of metastatic breast cancer.

Stock has nearly doubled in the last three weeks of trading.