Phillips 66, P.F. Chang’s, Domino’s, PLX Tech, Emerson Attract Traders May 1st
Phillips 66 Common Stock “When Issued” (NYSE:PSX): Phillips 66 announces debut as independent downstream energy company. Shares of Phillips 66 Common Stock “When Issued” are trading 0.76% lower today.
P.F. Chang’s China Bistro (NASDAQ:PFCB): P.F. Chang’s China Bistro announced that it has entered into a definitive merger agreement with Centerbridge Partners in a transaction valued at approximately $1.1B, which will result in P.F. Chang’s becoming a private company. Under the terms of the merger agreement, which has been approved by the Company’s Board of Directors, Centerbridge will acquire all of the outstanding shares of P.F. Chang’s common stock for $51.50 per share in cash. This represents a premium of approximately 30% over the average closing share price of P.F. Chang’s common stock for the 30 days ended April 30, 2012. Under the terms of the agreement, it is anticipated that Centerbridge will commence a tender offer for all of the outstanding shares of the Company no later than May 15, 2012. The transaction is conditioned upon, among other things, satisfaction of the minimum tender condition of approximately 83% of the Company’s common shares, the receipt of the Federal Trade Commission’s approval and other customary closing conditions. Shares of P.F. Chang’s China Bistro are trading 29.58% higher today.
Domino’s Pizza, Inc. (NYSE:DPZ): Says has fixed pricing on approximately 35%-40% of expected purchases in 2012. Shares of Domino’s Pizza, Inc. are trading 9.02% lower today.
PLX Technology, Inc. (NASDAQ:PLXT): Integrated Device Technology (NASDAQ:IDTI) and PLX Technology (NASDAQ:PLXT) announced last night that they have signed a definitive agreement pursuant to which IDT will acquire PLX. Under the terms of the agreement, unanimously approved by the boards of directors of both companies, IDT will acquire all of the outstanding shares of PLX common stock pursuant to an exchange offer, followed by a second step merger. In the acquisition, PLX stockholders will receive $3.50 in cash and 0.525 shares of IDT common stock for each PLX common share outstanding. Based on IDT’s closing stock price on April 27, the transaction is valued at approximately $7.00 per PLX share and results in a total transaction value of approximately $330M. IDT anticipates it will achieve total run-rate cost synergies, excluding transaction related charges, in excess of $35M by FY14. IDT currently projects the transaction to be accretive to non-GAAP earnings by Q3 of 2013 with more significant accretion by FY14. The companies expect that the proposed transaction will close as early as IDT’s Q1, which is the second quarter of calendar 2012. PLX may solicit superior proposals from third parties for a “go shop” period of 30 calendar days continuing through May 30. Shares of PLX Technology, Inc. are trading 66.33% higher today.
Emerson Electric Co. (NYSE:EMR): Sees FY12 reported sales growth 2%-4%, consensus $25.11B. Sees Fy12 operating cash flow $3.4B-$3.5B, CapEx $700M, tax rate 32%. Sees FY operating profit margin 17.5%-17.8%. Sees underlyling sales and orders growth rates reduced to 3%-5%. Second quarter results continue to support the expectation that Emerson will generate record sales, profitability, and earnings in 2012. Recovery of HVAC, telecommunications, and information technology end markets remains likely, but improvement is occurring at a slower pace than previously expected. Shares of Emerson Electric Co. are trading 5.5% lower today.
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