Top Consumer Stocks
Consumer stocks are mixed with shares of consumer staples companies in the S&P 500 adding around 0.3%. Shares of consumer discretionary firms in the S&P 500 are down about 0.2%.
In company news, Shares of YRC Worldwide ( YRCW ) are up 13% this afternoon after the shipping and logistics company said it has reached a tentative deal with the International Brotherhood of Teamsters on an extension of its collective bargaining agreement through March 2019.
YCRW has been seeking to refinance two series of convertible notes in a bid to reduce its debt load by around $300 million. The deal calls on investors to pay $250 million in cash for newly issued YRCW stock priced at $15 a share. The remaining $50 million in debt will be cut by its conversion into stock.
But YRCW creditors conditioned their agreement to refinance the company's debt on the union's accepting a contract extension that would keep a 15% wage cut in place through 2019 as well as delaying scheduled pay increases and reducing vacation time. Teamster employees at YRCW voted down those terms two weeks ago but agreed last week to reopen talks with with the company.
In other sector news,
(+) BUD, (+2.0%) Early Monday announces deal to buy back Oriental Brewery for $5.8 bln, exercising an option allowing it to reacquire the South Korean firm by July 2014 - or five years after BUD sold the brewery to Kohlberg Kravis Roberts for $1.8 bln.
(-) CAW, (-1.6%) Health, beauty products seller projects FY13 net loss over $6.1 mln. Also plans to outsource certain sales and administrative duties to Emerson Group with warehousing and shipping taken over by OHL, saving CAW about $3.5 mln in first year. Expects $300,000 restructuring charge in Q1 but returning to profitability in FY14.
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