Big Acquisitions, a Promise, and a New CEO: Morning Buzzers
Stock futures edged lower on Monday morning. The minutes of the last Federal Reserve Open Market Committee meeting will be released on Wednesday afternoon, and investors will have their eyes out for any signs that the governing body will begin tapering down bond purchases. On the other side of the world, Japan’s revitalized stimulus program helped spur first-quarter GDP growth and has driven markets to yet another five-year high.
U.S. futures at 8:50 a.m.: DJIA: -0.11%, S&P 500: -0.16%, NASDAQ: -0.26%.
Here’s what’s buzzing on Monday morning:
Yahoo (NASDAQ:YHOO) stock declined about 1 percent in pre-market trading on Monday. The company announced that it has entered into a definitive agreement to acquire Tumblr, and has issued a promise “not to screw it up.” The media network will operate independently and as a separate business, and CEO David Karp will remain CEO. Total consideration for the deal is approximately $1.1 billion, most of which will be paid in cash… (Read more.)
Actavis (NYSE:ACT) climbed 2.2 percent in pre-market trading after announcing that it will buy Warner Chilcott (NASDAQ:WCRX) in a stock-for-stock transaction valued at approximately $8.5 billion. Actavis reports that if successfully completed, the transaction will create a leading global specialty pharmaceutical company with approximately $11 billion in combined annual revenue, and the third-largest U.S. specialty pharmaceutical company with approximately $3 billion in annual revenues focused on core therapeutic categories of Women’s Health, Gastroenterology, Urology, and Dermatology.”
Chesapeake Energy (NYSE:CHK) stock climbed as much as 1.9 percent in pre-market trading after announcing that Robert Lawler, Senior Vice President, International and Deepwater Operations at Anadarko Petroleum (NYSE:APC), will join the company as CEO and as a member of the board effective June 17.
General Electric (NYSE:GE) edged up fractionally in pre-market trading after GE Capital announced that it would return $6.5 billion in dividends to GE in 2013. In addition, GE Capital will pay out $4.5 billion in special dividends, returning about 30 percent of total 2013 earnings for the year.
Will Obamacare Actually Make Workers Cheaper to Insure? Before the Patient Protection and Affordable Care Act was enacted into law, approximately 150 million Americans received health insurance through their jobs. Beginning next year, any business with 50 or more employees will pay a penalty for not offering coverage to its workers, and those not covered through their jobs will be required to purchase insurance as well… (Read more.)
Chevy Striking Balance With This Approach to 2014 Silverado: In its approach to the 2014 Chevy Silverado, GM (NYSE:GM) tried to muscle and glide further into the pick-up truck market. Striking a balance between workhorse power and improved performance off the job, the Silverado has a slightly different look to go along its improvements. The company is hoping to attract customers who like to drive after work as well as those who want a serious helping hand on the job… (Read more.)
Don’t Miss: Why Yahoo’s Bid for Tumblr is Genius.