Market Reacts to Microsoft’s Nokia Deal and 3 More Hot Stocks
Nokia Corp. (NYSE:NOK): Shares of Nokia are racing over 35 percent on the news that Microsoft (NASDAQ:MSFT) will be purchasing its mobile devices unit for $7.2 billion. While Nokia investors are thrilled, Microsoft’s sell side is less enthusiastic. Some believe the price tag was too high, and others are contending that Nokia CEO Stephen Elop is now the frontrunner as Steve Ballmer’s replacement. Roughly 32,000 Nokia employees will be joining Microsoft; Elop has resigned as CEO of the Finnish company to avoid any potential conflicts of interest.
Jarden Corp. (NYSE:JAH): Jarden shares are up after the company confirmed that it will be acquiring Yankee Candle for $1.75 billion, a transaction that will be categorized under the branded consumables segment. The deal, which will be financed through cash, equity, and a mix of bank debt and bonds, is expected to be accretive to Jarden’s earnings per share by around 10 percent before synergies are added in.
Citigroup Inc. (NYSE:C): Fighting to stay in compliance with prospective Volcker rule requirements, Citigroup has sold off around $6 billion in private-equity and hedge-fund assets over the past month. The bank divested the $4.3 billion private equity fund Citi Venture Capital International to Rohatyn Group for an undisclosed amount, and a $1.9 billion emerging-markets hedge fund to the vehicle’s managers, Seeking Alpha reports. Citi is also trying to sell a $2.5 billion North American private-equity fund, Metalmark Capital.
Vivus Inc. (NASDAQ:VVUS): Vivus CEO and board member Anthony Zook has resigned, effective Tuesday, due to a recurring medical problem. Zook took the throne just a couple of months ago in the wake of a bloody proxy fight with a leading investor. Retired Johnson & Johnson executive Seth Fischer will replace Zook as CEO and on the board.
Don’t Miss: Here Is Microsoft’s ‘Bold Step into the Future’.