Dell and Silver Lake’s Bid Refusal, PepsiCo’s Time with Peltz is Up, and 3 More Hot Stocks

Dell Inc. (NASDAQ:DELL): Michael Dell and Silver Lake are “prepared to see [their] deal blow up” rather than raise their bid above $13.65 per share, according to what sources told AllThingsD. A stumbling PC industry and rising borrowing costs are the roots of their unwillingness to push the bid above $13.65, with the vote scheduled to go ahead on Thursday morning.

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PepsiCo Inc. (NYSE:PEP): Pepsi has reached the end of a timeframe issued by Trian Asset Management’s Nelson Peltz for the company to consider and address a list of possibilities for the soft drink maker. The suggestions include the possibility of a merger with Mondelez International (NASDAQ:MDLZ), another food giant that Peltz has a significant stake in. However, some feel that if the company has not placed a firm enough emphasis on discussions, Peltz could take it public.

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BHP Billiton (NYSE:BHP): Iron ore output has leapt 9 percent for 2013 to a record 187 million tons as a “price-eroding supply glut” draws nearer. However, by digging deeper — and faster — that record could well be broken by the end of this year, as the company has plans to jack up its annual capacity to 220 million tons by December.

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Novartis AG (NYSE:NVS): Shares are down slightly after the company reported its second-quarter earnings, which saw a 2 percent drop in adjusted earnings to $3.23 billion versus the consensus of $3.22 billion. Earnings per share are down 4 percent to $1.30, 4 cents off the mark. Net sales grew by 1 percent to $14.49 billion, exceeding the $14.31 billion consensus. The company’s full-year guidance has also been increased to reflect the absence of Ranbaxy’s generic version of Novartis’s Diovan blood-pressure drug.

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Hewlett-Packard Co. (NYSE:HPQ): Jim Chanos admitted that he has been shorting HP stock and covering much of his position in the wake of the Autonomy disclosure and write-down from the company’s bumpy integration. Chanos isn’t feeling optimistic about HP, as the company has been reeling from losses across the board, and not just in PC sales — services, too, Chanos points out.

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