Deals of $34 Billion Dominate New York Trading

123jump.com Staff
19 Jan, 2010
New York City

Three deals dominated investor focus. Cadbury agreed to Kraft offer of $19.5 billion, Williams Companies and its affiliate agreed to restructure energy distribution assets for $12 billion and Tyco purchased Brinks Home Security for $2 billion. Financial were weak after Citigroup reported loss.

[R]11:10 AM New York – Three deals dominated investor focus. Cadbury agreed to Kraft offer of $19.5 billion, Williams Companies and its affiliate agreed to restructure energy distribution assets for $12 billion and Tyco purchased Brinks Home Security for $2 billion. Financial were weak after Citigroup reported larger than expected quarterly loss.[/R]

Stocks in New York traded higher after ninety minutes of trading. Three deals and a Senate seat election were in focus. Financials declined after Citigroup reported larger than estimated loss.

Cadbury Plc agreed to accept the improved offer from Kraft that valued the chocolate maker at $19.5 billion. The revised offer included 60% of cash was nearly 20% higher than the original Kraft’s offer four months ago.

Brink’s Home Security Holdings Inc soared more than 32% to $41.69 after it agreed to be acquired by Tyco International Ltd for $2 billion.

Williams Companies, Inc. increased 7.4% to $22.93 after the company and its Master Limited Partnership structure agreed to restructure their distribution network business that will provide a seamless transport of energy from the Gulf Coast Regions to Rocky Mountains. The restructuring is valued at $12 billion.

Healthcare insurance companies led the gainers in New York as Massachusetts voters select new Senate representatives. Democrat candidate Martha Coakley is trailing in recent polls.

In the commodities trading, crude oil decreased 23 cents to $77.77 a barrel and natural gas declined 22 cents to $5.47 per mBtu.

Ten-year Treasuries traded at 3.71% and 30-year Treasuries gained to yield 4.60%.

Earnings Review

Citigroup Inc reported fourth quarter revenues fell 3.6% to $5.4 billion from $5.6 billion a year ago. Net loss in the quarter was $7.6 billion or 33 cents per diluted share compared to net loss of $17.3 billion or $3.40 per share a year ago.

Net sales for the fiscal year 2009 rose 55.6% to $80.3 billion from $51.6 billion a year ago. Net loss for the year was $1.6 billion or 80 cents per diluted share compared to net loss of $27.7 billion or $5.61 per share a year ago.

Parker-Hannifin Corporation, the maker of motion control technology and systems reported second quarter sales fell 12.6% to $2.35 billion from $2.69 billion a year ago. Net income in the quarter fell 32.7% to $104.5 million or 64 cents per diluted share compared to net income of $155.4 million or 96 cents per share a year ago.

TD Ameritrade Holding Corporation, the online brokerage company reported first quarter revenues rose 2% to $624.6 million from $610.7 million a year ago. Net income in the quarter fell 26% to $136.2 million or 23 cents per diluted share compared to net income of $184.4 million or 31 cents per share a year ago.