Consumer stocks were considerably higher Monday afternoon, with
shares of consumer staples companies in the S&P 500 adding more
than 1.4%. Shares of consumer discretionary firms in the S&P
500 were up about 1.1%.
In company news, Pinnacle Foods (
) shares raced to an all-time high Monday, jumping more than 17%
after the packaged foods company accepted a $6.6 billion buyout
offer from Hillshire Brands (
HSH said the deal is expected to immediately add to its
earnings, with per-share net income for the combined companies
rising more than 15% over its year-ago EPS. The projections include
around $140 million per year in expected cost synergies derived
from supply-chain enhancements and consolidating overhead expenses.
Revenue is seen growing due to expanded brand portfolio and broader
HSH also will acquire about $390 million in PF tax assets.
Under terms of the deal, PF sharesholders will receive $18.00 in
cash and one-half of a HSH share for each share they now own. The
$36.02 per share purchase price marks an 18% premium to PF's $30.45
a share closing price on Friday.
PF shares were up 13.5% at $34.55 each in recent trade, earlier
climbing to a record high for the stock at $35.67 a share. HSH
shares recently were off 4.9% at $35.14 each, maintaining a small
margin above its intra-day low of $36.22 a share, sinking more than
In other sector news,
(+) RDEN, (+1.9%) Shares rising ahead of the beauty products
company's tonight reporting fiscal Q3 results. Analysts, on
average, are expecting RDEN to report a break-even quarter on a
per-share basis on around $256.86 mln in revenue.
(-) BPI, (-8.2%) Q1 net loss of $0.10 per share is $0.09 wider
than the Capital IQ consensus. Revenue falls 27.7% year over year
to $160.5 mln, trailing Street view by $9.89 mln.