U.S. Movers: Adobe, Anheuser Busch, Illumina, Southwest Airlines, U.S. Steel

Scott Peters
18 Dec, 2023
New York City

U.S. Steel Corporation surged 28.2% to $50.33 after the steelmaker accepted the $55 per share offer from Japan-based Nippon Steel in cash.

The offer values the steel company at $14.9 billion in enterprise value, and the deal is expected to close in the second or third quarter of 2024.

Southwest Airlines declined 0.4% to $28.90, and the company reached a $140 million agreement, including a $35 million fine.

The fourth-largest U.S. airline by revenue settled a federal investigation for thousands of flight cancellations and stranding 2 million passengers after heavy snowstorms in Denver and Chicago in December 2022.

The U.S. Department of Transportation said the total charges are the largest it has ever imposed on an airline for violating consumer protection laws.

Before the government's assessment, Southwest said that the reservation system meltdown cost the airline about $1.1 billion in refunds, reimbursements, lost revenue over several months, and additional costs.

Anheuser Busch InBev increased 0.4% to $62.75 and the union representing workers called for a strike if wage negotiations fail. 

The International Brotherhood of Teamsters said in a press release that its members working at Anheuser-Busch plants in the U.S. have voted by 99% to authorize a strike if company fails to provide a strong contract. 

The current agreement is scheduled to expire on February 29, 2024, and the union representing 5,000 members working at 12 plants is seeking higher wages, stronger job security, and expanded healthcare and retirement benefits. 

Illumina, Inc. rose 4.6% to $133.0 after the San Diego-based biotech company said it plans to divest its acquisition of cancer screening company Grail.

Illumina faced an uphill task in convincing regulators after an appeals court ruled on Friday that the $7 billion merger could violate antitrust laws.

Earlier in October, the antitrust regulatory agency of the European Union also slapped the company with a fine of $475 million for completing the merger before receiving its consent.

The company said it plans to sell the company to a third party or complete a public offering before the end of 2024.

Adobe increased 2% to $595.50 after the company and Figma said they plan to cancel their $20 billion merger plan, citing regulatory hurdles.