P&G, Ford Motor, Solutia, Infinity Among Stocks in Trading Spotlight Jan 27th

The Procter & Gamble Company (NYSE:PG): On its Q4 earnings conference call, Proctor & Gamble (NYSE:PG) said in reference to the planned divestiture of it Pringles brand to Diamond Foods (NASDAQ:DMND), that “we’re just at this point following Diamond’s public representations that they’re going to have concluded the internal investigation in the middle of February and we’ll obviously be able to talk with them in more detail about that at that time.” An analyst noted that the company “kept in the gain from the divestiture by fiscal year end” but the company did not give guidance as to when it expected any sale to close. Shares of The Procter & Gamble Company are trading 0.86% lower today.

Solutia Inc. (NYSE:SOA): Eastman expects the transaction to be immediately accretive to earnings, excluding acquisition-related costs and charges. Eastman has identified annual cost synergies of approximately $100M that are expected to be achieved by year-end 2013. Further, Eastman expects to realize significant tax benefits from Solutia’s historical net operating losses and other tax attributes that are expected to contribute to free cash flow of approximately $1B through 2013. The transaction, which was approved by the Boards of Directors of both companies, remains subject to approval by Solutia’s shareholders and receipt of required regulatory approvals as well as other customary closing conditions. The transaction is expected to close in mid-2012. Shares of Solutia Inc. are trading 39.57% higher today.

Infinity Pharmaceuticals Inc. (NASDAQ:INFI): Infinity Pharmaceuticals announced interim data from its double-blind, randomized, placebo-controlled Phase 2 study comparing saridegib in combination with gemcitabine to placebo plus gemcitabine in 122 patients with previously untreated, metastatic pancreatic cancer. The primary endpoint of the Phase 2 study is overall survival. While the final analysis is not complete, a preliminary analysis of data from the study that was completed yesterday showed a difference in survival favoring the placebo plus gemcitabine arm due to a higher rate of progressive disease in the saridegib plus gemcitabine arm. The median survival for patients receiving saridegib plus gemcitabine was less than the historical median survival for single-agent gemcitabine of approximately six months, as compared to a median survival for the placebo plus gemcitabine arm of greater than six months. The adverse events observed in both arms were consistent with the known safety profile of each agent, with no unexpected toxicities. Based on this interim analysis, Infinity is voluntarily stopping the trial. The company expects to present the final data after the analyses are complete. Shares of Infinity Pharmaceuticals Inc. are trading 39.64% lower today.

Inergy, L.P. (NYSE:NRGY): For the twelve months ended December 31, Inergy generated distributable cash flow of approximately 68% of the total cash distributions paid for the period. Market conditions, primarily in its propane operations and to a lesser extent in the Texas gas storage market, remain challenging. Although there are a number of factors that may impact its operations through the remainder of this fiscal year, a material improvement in distribution coverage is not expected. In light of these factors, management is conducting an evaluation of the operating businesses at Inergy, and is in the process of a major cost reduction initiative in its propane operations. In addition, management and the board of directors of Inergy are evaluating a reset of the quarterly distribution to a level that is supportable by the cash flow expected to be generated from Inergy’s businesses in the near term. Shares of Inergy, L.P. are trading 23.1% lower today.

Ford Motor Company (NYSE:F): Sees 675K units production in North America, 100K in South America, 410K in Europe, and 215K in Asia Pacific/Africa. Guidance from slides for Q4 earnings conference call. Shares of Ford Motor Company are trading 4.08% lower today.

Eastman Chemical Company (NYSE:EMN): Eastman expects the transaction to be immediately accretive to earnings, excluding acquisition-related costs and charges. Eastman has identified annual cost synergies of approximately $100M that are expected to be achieved by year-end 2013. Further, Eastman expects to realize significant tax benefits from Solutia’s historical net operating losses and other tax attributes that are expected to contribute to free cash flow of approximately $1B through 2013. The transaction, which was approved by the Boards of Directors of both companies, remains subject to approval by Solutia’s shareholders and receipt of required regulatory approvals as well as other customary closing conditions. The transaction is expected to close in mid-2012. Shares of Eastman Chemical Company are trading 4.65% higher today.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com