Herbalife Soars on Stock Buyback Plan, Sempra Bids Higher for Oncor

Mukesh Buch
21 Aug, 2017
New York City

B&G Foods agreed to acquire Back to Nature Foods for $162.5 million. Herbalife launched self-tender offer to buy back up to $600 million of shares and negotiated standstill agreement with Icahn. Sempra Energy offers more for Oncor surpassing Berkshire bid.

[R]12:30 PM New York – B&G Foods agreed to acquire Back to Nature Foods for $162.5 million. Herbalife launched self-tender offer to buy back up to $600 million of shares and negotiated standstill agreement with Icahn. Sempra Energy offers more for Oncor surpassing Berkshire bid.[/R]

Tollbooth Index rose 18.09 to 12,057.74.

Earnings Review

Albireo Pharma, Inc ((ALBO)) declined 3.5% or 83 cents to $22.71 after the therapeutic drugs maker said net in the second-quarter ending in June swung to a loss of $6.2 million from profit of $2.1 million and diluted loss per share swung to 86 cents from diluted earnings per share of 69 cents in the same period a year ago.

B&G Foods, Inc ((BGS)) fell 30 cents to $31.10 after the frozen foods provider agreed to acquire SnackWell cookies maker Back to Nature Foods Company, LLC for about $162.5 million.

The transaction is expected to close in the third-quarter of this year.

Beyondspring Inc ((BYSI)) gained 34 cents to $40.21 after the clinical-stage biopharmaceutical products maker reported net loss in the second-quarter ending in June widened to $60.7 million from $5.4 million and diluted loss per share increased to $3.05 from 34 cents in the same period a year ago.

Herbalife Ltd ((HLF)) surged 10.3% or $6.39 to $68.34 after the Cayman Islands-based nutritional and personal care products provider today launched ""modified Dutch auction"" self-tender offer to buy back up to $600 million of shares at a per share price between $60 and $68.

Herbalife said that Carl Icahn will not increase his aggregate ownership of more than 50% from the current stake of 24% for the next two years, unless he agreed to buy 100%.

Icahn said that he will not participate in the recent tender offer. In last week, the company also said it has terminated negotiations to go private.

Sempra Energy ((SRE)) increased 1.2% or $1.45 to $117.95 after the multi-utility provider agreed to acquire Texas power distributor Oncor Electric Delivery Co for about $9.45 billion in cash after its bankrupt parent owner Energy Future Holdings Corp drop the $9 billion deal with Berkshire Hathaway Inc.

In July, the energy unit of Berkshire Hathaway agreed to buy Oncor for $9 billion but the deal was abandon after Energy Future''s major creditor Elliott Management Corp opposed the sale and demanded higher price.

Sempra Energy said it expects the deal to be completed in the first-half of 2018.