Boeing Soars, AT&T Purchase Denied: Morning Buzzers
U.S. stock futures are looking good this morning, a sign that the S&P 500 will recover from last week’s declines that were caused by speculation that the Federal Reserve would start cutting stimulus. The Fed is scheduled to have a monetary policy meeting this Tuesday and Wednesday.
Futures at 8:30 a.m.: DJIA: +0.75% S&P 500: +0.82% NASDAQ: +0.91%
Here’s what’s buzzing Monday morning:
Elan Corp. (NYSE:ELN) investors have approved a $200 million share repurchase plan, putting a stop to Royalty Pharma’s unsolicited $6.7 billion takeover bid. Royalty Pharma was looking to purchase Elan in part to gain royalties for an intravenous multiple sclerosis drug called Tysabri.
AT&T’s (NYSE:T) attempt to buy Spanish telecommunications company Telefonica has been stopped by the Spanish government, while Telefonica denies ever having received a supposed $93 billion bid from AT&T. The government is opposing the deal, which would have included the assumption of Telefonica’s significant debt, due to national strategic reasons.
Boeing (NYSE:BA) and its European competitor Airbus are ready to show their stuff at the Paris Air Show beginning today. Boeing is expected to announce a new, even bigger 787 Dreamliner. Both companies are doing extremely well due to a boom in demand for aircraft, facing order backlogs that could take until the end of the decade to fill. Boeing seems to be flying high despite numerous problems that have plagued the 787 Dreamliner since its release.
ABB (NYSE:ABB) has announced its new Chief Executive Officer will be Ulrich Spiesshofer, who had been the head of the Discrete Automation and Motion division until former CEO Joe Hogan unexpectedly resigned. Spiesshofer has been very successful leading DM, doubling the division’s revenue in his time as head of the division.
Smithfield Foods (NYSE:SFD) has been in talks with Chinese meat producer Shuanghui International, but activist investor Starboard Value is urging the biggest producer of pork in the U.S. to break up rather than allow itself to be bought out by Shuanghui, according to a letter cited by the New York Times. Starboard is one of the biggest shareholders in the company, and it believes Smithfield would be worth much more if it separated rather than take the $4.7 billion offer from Shuanghui.
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