Delta Choses Airbus Over Boeing and 3 More Hot Stocks
Delta Air Lines (NYSE:DAL): Delta has chosen to order its next 40 jets from Boeing’s (NYSE:BA) rival Airbus, which won the $5.6 billion deal as Delta seeks to decrease its reliance on Boeing for the first time in years. The order consists of 30 A321 narrow-body planes to be used on domestic flying as well as 10 A330-300 wide-body aircraft for international routes. Deliveries will be between 2015 and 2017. Analysts and observers contend that Delta’s holding out on new orders landed the company a “a phenomenally good deal.”
Smithfield Foods (NYSE:SFD): The Committee on Foreign Investment in the United States will likely clear the way for Shuanghui International’s bid for the meat producer, despite some food safety concerns from lawmakers. However, Starboard Value — which is heavily invested in Smithfield — is pushing for a better offer than Shuanghui’s $4.7 billion deal.
GlaxoSmithKline (NYSE:GSK): Glaxo’s experimental cancer vaccine MAGE-A3 has missed one of its primary endpoints in a Phase III melanoma trial as it did not significantly extend disease-free survival compared to placebo. However, Glaxo is still ”committed to identifying a patient sub-population who may benefit from this investigational treatment,” as data regarding a second endpoint and results from a Phase III trial of MAGE-A3 in non-small cell lung cancer are due in 2015 and the first half of 2014, respectively.
Barrick Gold Corporation (NYSE:ABX): Hedge fund Two Fish Management is calling for the breaking up of Barrick Gold as it believes there is no need for the company to own a worldwide conglomerate of gold mines. “This is the world’s largest gold mining concern and it doesn’t have a geologist or an engineer on its board,” Two Fish’s Mike Morris says. Barrick has agreed to sell off its energy subsidiary in a series of deals worth $455 million and three high-cost mines in South Africa for $300 million since Two Fish began pushing for changes.