Denbury Acquires Encore for $4.5 B; Ford Surges

123jump.com Staff
02 Nov, 2009
New York City

Ford Motor Company led gainers in the S&P 500 index with a rise of 9.5%. Ford Motor Co swings to a profit in the third quarter of $997 million. Denbury Resources agreed to acquire Encore Acquisition Corp for $4.5 billion in an exchange of cash and stock.

[R]11:45 AM New York – Ford Motor Company led gainers in the S&P 500 index with a rise of 9.5%. Ford Motor Co swings to a profit in the third quarter of $997 million. Denbury Resources agreed to acquire Encore Acquisition Corp for $4.5 billion in an exchange of cash and stock.[/R]

Of the stocks in S&P 500 index, 338 increased, 156 declined and 6 were unchanged.

Denbury Resources Inc led the decliners in the S&P 500 index with a loss of 7.6% followed by losses in Dean Foods Company of 6.7%, in Office Depot, Inc of 4.1%, in Moody’s Corporation of 2.9% and in Wynn Resorts, Limited of 2.6%.

Ford Motor Company led gainers in the S&P 500 index with a rise of 9.5% followed by gains in Varian Medical Systems, Inc 6.4%, in Tenet Healthcare Corporation of 4.6% and in BB&T Corporation of 4.1%.

Other Movers

AAON, Inc ((AAON)) decreased 2.6% or 49 cents to $18.01 an air-conditioning and heating equipment maker reported third quarter sales fell 26.2% to $58.5 million from $79.3 million a year ago. Net income in the quarter fell 8.3% to $7.7 million or 45 cents a diluted share compared to net income of $8.4 million or 47 cents per share a year ago.

Administaff, Inc ((ASF)) declined 0.9% or 23 cents to $24.82 after the provider of human resources services reported third quarter sales fell 7.3% to $390.9 million from $421.9 million a year ago. Net income in the quarter fell 51.3% to $5.8 million or 23 cents per diluted share compared to net income of $11.9 million or 46 cents per share a year ago.

Amylin Pharmaceuticals, Inc ((AMLN)) surged 12.2% or $1.35 to $12.39 after the biopharmaceutical company and Japan based Takeda Pharmaceutical Company Limited announced today that they have entered into a worldwide exclusive co-development and commercialization agreement for the treatment of obesity.

CNA Financial Corporation ((CNA)) added 4.2% or 93 cents to $22.70 after the insurance company reported third quarter net premiums written fell 6.3% to $1.5 billion from $1.6 billion a year ago. Net income in the quarter was $263 million or 86 cents per diluted share compared to net loss of $331 million or $1.23 per share a year ago.

Cooper Tire & Rubber Company ((CTB)) gained 10.5% or $1.61 to $16.87 after the tiremaker said third quarter net income of $47 million compared to net loss of $55 million a year ago.

Covidien PLC ((COV)) advanced 1.5% or 68 cents to $42.80 after the medical-instrument maker said that its subsidiary, Mallinckrodt Inc., has received FDA approval of its Abbreviated New Drug Application for Oral Transmucosal Fentanyl Citrate.

Dean Foods Company ((DF)) decreased 1.2% or 23 cents to $18.00 after the food and beverage company reported third quarter sales fell 13% to $2.77 billion from $3.19 billion a year ago. Net income in the quarter rose 31.5% to $49.7 million or 27 cents per diluted share compared to net income of $37.8 million or 24 cents per share a year ago.

Denbury Resources Inc ((DNR)) fell 8% or $1.18 to $13.42 after it agreed to acquire Encore Acquisition Company for $4.5 billion including the debt and minority interest in Encore Energy Partners LP.

Under the terms of the agreement Encore shareholders will receive a total of $50 a share including $15 a share and $35 in Denbury common stock. The combined companies will have one of the largest CO2 enhanced oil recovery reserve assets spread in the Gulf Coast and Rocky Mountain regions.

Encore Acquisition Company ((EAC)) surged 23% to $45.58

Ducommun Incorporated ((DCO)) rose 5.4% or 92 cents to $17.94 an aircraft parts maker reported third quarter revenues rose 9% to $109.9 million from $100.9 million a year ago. Net income in the quarter fell 1.6% to $6.2 million or 59 cents per diluted share compared to net income of $6.3 million or 59 cents per share a year ago.

Ford Motor Company ((F)) increased 9.1% or 64 cents to $7.64 after the automaker reported third quarter revenues fell 2.5% to $30.9 billion from $31.7 billion a year ago. Net income in the quarter was $997 million or 29 cents per diluted share compared to net loss of $161 million or 7 cents per share a year ago.

Human Genome Sciences ((HGIS)) surged 34.5% to $25.13 after the company and GlaxoSmithKline reported positive indications in the preliminary trials for the treatment of systemic lupus.

Humana Inc ((HUM)) fell 1.9% or 74 cents to $36.29 after the health insurer reported third quarter revenues rose 8% to $7.72 billion from $7.15 billion a year ago. Net income in the quarter rose 64.8% to $301.5 million or $1.78 per diluted share compared to net income of $183 million or $1.09 per share a year ago.

Loews Corporation ((L)) increased 3.6% or $1.21 to $34.31 after the insurance company reported third quarter revenues rose 26% to $3.74 billion from $2.97 billion a year ago. Net income in the quarter was $468 million or $1.08 per diluted share compared to net loss of $137 million or 31 cents per share a year ago.

Mednax, Inc ((MD)) rose 1.9% or $1.01 to $52.93 after the provider of physician services reported third quarter revenues rose 24% to $331.3 million from $267.2 million a year ago. Net income in the quarter rose 28.6% to $48.1 million or $1.03 per diluted share compared to net income of $37.4 million or 81 cents per share a year ago.

The Progressive Corporation ((PGR)) the insurer rose 1.9% or 32 cents to $16.31.

Royal Bank of Scotland declined 7.3% to $12.66 after the troubled lender prepares to sell more assets and bank branches to meet EU directive that is still not final. The lender is required to shrink to meet the European Union bailout conditions after it received 20 billion pounds of UK government support.

Royal Caribbean Cruises Ltd ((RCL)) gained 3.6% or 74 cents to $20.97 after the cruise operator was upgraded to “outperform” from “market perform” at Wells Fargo & Co.

Sysco Corporation ((SYY)) slipped 0.4% or 12 cents to $26.33 after the food distributor reported first quarter sales fell 8% to $9.08 billion from $9.88 billion a year ago. Net income in the quarter rose 18% to $326.2 million or 55 cents a diluted share compared to net income of $276.8 million or 46 cents per share a year ago.

Terra Industries Inc ((TRA)) rose 7.5% or $2.41 to $34.18 after the producer and marketer of nitrogen products today confirmed receipt of a revised proposal from CF Industries Holdings, Inc. to acquire company for $32.00 in cash (reduced by the $7.50 per share special dividend declared by Terra) and 0.1034 of a share of CF Industries common stock for each the company’s share.