Monday headlines include: Kodiak and Whiting forming the biggest producer in the Bakken, eBay and Sotheby's teaming up to stream auctions online, Boeing signaling that its F-18 plant could stay open through 2017, Ford stopping production in South Africa due to a strike and J.C. Penney getting turned down by the CEO of HSN.
Kodiak Oil & Gas
Oil driller Kodiak Oil & Gas ( KOG ) agreed to be acquired by Whiting Petroleum ( WLL ). Whiting will pay a total of $3.8 billion in stock and assume $2.2 billion in debt. Kodiak shareholders will receive 0.177 shares of Whiting for each Kodiak share. That's equivalent to roughly $13.90 per share, which is a 5% premium to Kodiak's average price over the last two months, but a discount to the stock's $14.23 closing price on Friday. The combined company will be the largest producer in the Bakken and Three Forks formations.
Online auction side eBay ( EBAY ) is teaming up with Sotheby's ( BID ) to stream auctions at the storied auction house online. The auctions from Sotheby's New York auction site will start streaming in the fall, with other sites to be added later. The two companies are also planning to ad online only sales.
Aircraft maker and defense contractor Boeing ( BA ) said Sunday that it expects to keep producing both F/A18 and E-18G jet fighters through the end of 2017 if Congress will approve funding for orders for 12 more planes. Frank Kendall, the Department of Defense's chief buyer, has reportedly said that slowing production to keep the assembly line open longer would add costs at a time when budgets are already tight.
Automaker Ford (F) suspended production at a plant is South Africa due to a strike by manufacturing workers. The strike has hit supplies of car components in the country, causing General Motors (GM) to shut down production last week. Toyota (TM) is also expected to stop building cars if the strike continues.
The Wall Street Journal reported Sunday that struggling retailer J.C. Penney (JCP) was rejected by HSN (HSNI) CEO Mindy Grossman. Talks had reportedly reach an advanced stage, but the Grossman and the retailer couldn't settle on final terms.
This article was originally published on MarketIntelligeneCenter.com