The bidding war between
came to a head on Sunday after Tyson offered a final bid of $63 in
cash per share.
The offer values Hillshire at about $7.7 billion and trumps
Pilgrim's bid by almost $1 billion.
The deal will be the meat packing industry's largest ever and
will help Tyson build its branded meat portfolio.
The Wall Street Journal
reported that the deal hadn't been finalized as of Sunday night,
and that Hillshire likely won't be able to sign until it terminates
its agreement to buy
In other news around the markets:
On Monday, China's Foreign Ministry spokeswoman Hua Chunying called
a gathering of soldiers from Vietnam and the Philippines on
Southwest Cay a "clumsy farce" and demanded that both nations stop
causing trouble. The gathering highlighted the ongoing territorial
dispute between several Asian nations and China over parts of the
South China Sea. On Monday, Abdel Fattah Al Sisi was sworn in as
Egypt's new president less than a year after the military, which
was under Sisi's command, ousted President Mohammed Morsi. Sisi has
promised to bring democracy to the divided nation which has
suffered through two revolutions over the past three years. However
his inauguration ceremony didn't include any Islamists or liberals,
a telling sign that the nation has a long road ahead. Japanese
first quarter GDP was revised up to 6.7 percent from initial
estimates of 5.9 percent. The new figure was adjusted to reflect
much higher capital spending than was originally estimated and
marks the nation's sixth consecutive quarterly expansion. Improving
global demand helped Chinese exports gain momentum in May, but
imports struggled, signaling weak domestic demand. Exports
increased by seven percent annually, a marked improvement from
April's 0.9 percent rise and far above expectations for a 6.6
percent increase. However, imports were down 1.6 percent.
Most analysts don't expect that the nation's trade data will affect
Beijing's policy stance although the falling imports will likely
put pressure on the government to continue to support the nation's
Asian markets were mostly higher with the exception of the KOSPI
and the Shenzhen composite, which lost 0.27 percent and 1.18
percent respectively. The NIKKEI was up 0.21 percent, the Shanghai
composite gained 0.03 percent and the Hang Seng index was up 0.73
European markets improved; the FTSE rose 0.26 percent, the STOXX
600 gained 0.19 percent, the MIB was up 0.13 percent and the DAX
gained 0.10 percent.
Energy futures began the week on a high; both Brent and WTI
futures were up 0.50 percent. Gold and silver were also higher, up
0.21 percent and 0.60 percent respectively, but industrial metals
were mixed. Copper lost 0.92 percent and tin was down 0.22 percent,
but aluminum gained 1.57 percent and Zinc rose 0.77 percent.
Currency markets were quiet on Monday morning; the euro was
steady at $1.3634 and lost 0.12 percent against the pound and 0.10
percent against the yen. The dollar was also moderately lower
against the yen, down 0.03 percent. The greenback also fell 0.05
percent against the pound and 0.30 percent against the Australian
Notable earnings released on Friday included:
Jos. A. Bank Clothiers (NASDAQ:
) reported first quarter EPS of $0.32, compared to last year's EPS
of $0.40 on revenue of $196.06 million.
Stocks moving in the Premarket included:
Carnival Corp (NYSE:
) gained 1.12 percent in premarket trade after rising 0.55 percent
last week. Apple (NASDAQ:
) gained 0.44 percent in premarket trade after falling 0.27 percent
on Friday. Nike (NYSE:
) was up 0.28 percent in premarket trade after losing 0.88 percent
over the past five days.
Notable earnings expected on Monday include:
Hertz Global Holdings (NYSE:
) is expected to report first quarter EPS of $0.09 on revenue of
$2.56 billion, compared to last year's EPS of $0.21 on revenue of
$2.44 billion. Ferrellgas Partners (NYSE:
) is expected to report third quarter EPS of $0.62 on revenue of
$740.22 million, compared to last year's EPS of $0.56 on
revenue of $603.02 million.
Economic releases on Monday will be relatively thin with most of
the releases out during Asia's session. Notable releases include
Chinese PPI, Chinese CPI, Australian business confidence and
Japan's current index.
For a recap of Friday's market action, click .
Tune into Benzinga's #PreMarket Prep to hear Stephen Burns,
Kevin McPartland and Anne-Marie Baiynd today by clicking
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