Tesla Sees Big Opportunity in Hong Kong, Diageo Expands United Stake, and 3 More Hot Stocks
Tesla Motors (NASDAQ:TSLA): Tesla has reported that early demand in Hong Kong shows encouraging signs that its Model S sedan will do in the Asian market, as the automaker says it’s received hundreds of orders for its new car, enough to double the number of electric cars on the roads of Hong Kong. Impressively, the company has not yet even set a price for the vehicle yet.
Diageo (NYSE:DEO): Diageo has taken a controlling stake in United Spirits, with a 14.98 percent stake in the Indian company from companies owned by businessman Vijay Mallya for 31.3 billion rupees, or about $521 million. Diageo’s is now 25.02 percent, but voting and other governance arrangements with Mallya enable the company to have control.
Unilever Plc (NYSE:UL): Like Diageo, Unilever has also been expanding its ownership stakes in its Indian assets, this time expanding its grip on Hindustan Unilever to 67.28 percent from 52.48 percent — missing the company’s mark of 75 percent. Hindustan shareholders tendered 319.7 million shares in response to Unilever’s offer of 600 rupees — $9.90 — per share. As a result, the Anglo-Dutch company might have to pay more for its stake expansions in the future, as it tries to solidify its presence in emerging markets.
Merck & Co (NYSE:MRK): China’s National Development & Reform Commission is investigating the costs and prices of 60 pharmaceutical companies, with Merk and Novartis (NYSE:NVS) among them. The investigation is being done so that drug prices can be adjusted in a more timely fashion, according to the Commission. The country is trying to curb the costs of medications, as the drugs on the list are subsidized and purchased in bulk by provincial governments.