Markets
VTR

Sector Update: Financial

Financial stocks were narrowly higher this afternoon ,with the NYSE Financial Sector Index rising about 0.1% and the S&P Financial 100 Index climbing 0.2%.

In company news, American Realty Capital Healthcare Trust Inc. ( HCT ) advanced Monday after agreeing to a $2.6 billion cash and stock buyout offer from Ventas Inc ( VTR ), extending the reach of what already is one of the largest U.S. real estate investment trusts focused on healthcare facilities.

HCT shares were up nearly 9% at $10.83 apiece in mid-day trade, earlier climbing as high as $12.30 a share, the stock's best price since its April 7 debut as a publicly traded company.

VTR is offering $11.33 for each HCT share, a 14% premium to its most recent closing price, with HCT shareholders having the choice of receiving that amount in cash or 0.1688 of a VTR share. The cash portion of the deal is capped at 10% of HCT shares.

Once the deal is complete, HCT shareholders - who will need to sign off on the proposed transaction - would own about 8% of the combined companies.

Separately, VTR said it was buying 29 independent-living facilities in Canada from Holiday Retirement for around $900 million (C$980 mln) in cash. Together with the HCT purchase, VTR expects the acquisition will add about $0.10 to its per-share funds from operations.

VTR shares were off about 3.4% at $64.52 apiece in recent trade, earlier slipping to a session low of $64.08 a share. The stock has a 52-week range of $54.89 to $73.41 a share, declining about 5.3% over the same span.

In other sector news,

(+) PL, (+11.7%) Dai-ichi Life reportedly is looking to buy the American life insurance carrier for around $4.9 bln (500 bln yen). The Japanese company told The Wall Street Journal it is interested in a U.S. firm but would not name a target.

(-) AFSI, (-3.0%) Weekend Barron's article questions "multimillion-dollar incongruities" in the company's regulatory filings.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

VTR

Other Topics

Commodities

Latest Markets Videos

    MTNewswires

    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More