The bidding war over Chicago-based meats and desserts company
Hillshire Brands Co.
heated up after
Pilgrim's Pride Corp
increased its acquisition offer by $1 billion.
The new offer values Hillshire at $55 per share, a step up from
$50 a share offer on Thursday.
If Hillshire strikes a deal with either company, last month's
$4.3 billion acquisition deal with Pinnacle Foods would be off the
table. Hillshire shares rose 2.7 percent to $55 a share in
after-hours trading following reports of Pilgrim's new bid.
In other news around the markets:
China's services and manufacturing Purchasing Managers' Index for
May showed a marked improvement from April's 48.1 reading and rose
to a four month high of 49.4. The figure, although still below the
50 point mark that separates expansion and contraction, indicated
that the Chinese economy was improving, albeit slowly. The US
government investigation into whether or not BNP Paribas violated
US sanctions took a sour turn on Tuesday when France's Foreign
Minister said that the French government would defend BNP if the
bank is subjected to what he believes are "unreasonable" fines. BNP
could face penalties of up to $10 billion from the United States;
something Laurent Fabius has said is disproportionate to the
infraction. Eurozone PMI figures confirmed speculation that the
nation's recovery was beginning to wane. The region's PMI slid to a
six month low of 52.2 in May, with most of the bloc's members
posting disappointing figures. Spain and the Netherlands were the
only nations to show increased momentum, while Germany suffered yet
another decrease in factory activity and France posted a score
below 50, indicating a contraction. During the first day of the
World Wide Developers Conference,
revealed its plans to break into the fitness tracking market with a
new "HealthKit" suite of mobile applications. The applications will
use health and home data to work together with companies like
and the to offer users a more complete health tracking
Asian markets were mixed; the NIKKEI rose 0.66 percent, the
KOSPI was up 0.33 percent and the Hang Seng Index gained 0.83
percent. However, the Shanghai composite lost 0.04 percent and the
Shenzhen composite was down 0.19 percent.
Europe's markets were down across the board with the exception
of the Spanish IBEX, which rose 0.32 percent. The UK's FTSE was
down 0.17 percent, the eurozone's STOXX 600 lost 0.10 percent, the
German DAX fell 0.04 percent and the CAC 40 was down 0.02
Energy futures were moderately lower with Brent futures down
0.14 percent and WTI futures down 0.01 percent. Gold and silver
gained 0.14 percent and 0.70 percent respectively, and industrial
metals were also higher. Aluminum gained 0.65 percent, zinc was up
1.41 percent and tin gained 0.67 percent.
Currency markets were quiet on Tuesday; the euro was steady at
$1.3604 but lost 0.02 percent against the pound. The dollar was
down 0.02 percent against the yen and 0.31 percent against the
Notable earnings released on Monday included:
Krispy Kreme Doughnuts (NYSE:
) reported first quarter EPS of $0.23 on revenue of $121.60
million, compared to last year's EPS of $0.20 on revenue of $120.62
million. Quiksilver (NYSE:
) reported a second quarter loss of $0.15 on revenue of $408.00
million, compared to last year's loss of $0.12 on revenue of
Stocks moving in the Premarket included:
) was up 0.49 percent in premarket trade after gaining 5.86 percent
on Monday. Ford Motor (NYSE:
) was down 0.30 percent in premarket trade after rising 2.62
percent over the past five days.
Notable earnings releases expected on Tuesday include:
Dollar General (NYSE:
) is expected to report first quarter EPS of $0.73 on revenue of
$4.56 billion, compared to last year's EPS of $0.71 on revenue of
$4.23 billion. ABM Industries (NYSE:
) is expected report second quarter EPS of $0.40 on revenue of
$1.23 billion, compared to last year's EPS of $0.36 on revenue of
$1.17 billion. Mattress Firm Holding (NASDAQ:
) is expected report first quarter EPS of $0.36 on revenue of
$337.55 million, compared to last year's EPS of $0.38 on revenue of
After a busy day of PMI releases on Monday, Tuesday's economic
calendar will be relatively quiet. Investors will be watching for
Australian GDP, British construction PMI, US car sales, Italy's
unemployment rate and Hong Kong's retail sales.
For a recap of Monday's market action, click .
Tune into Benzinga's #PreMarket Prep to hear Doug Kass and
Reggie Middleton on the today by clicking
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