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Market Update

Abbott in $5.8 B Deal with Alere, Dominion Resources to Acquires Questar


Author: Mukesh Buch
ticker.com
Last Update: 11:54 AM ET February 01 2016

12:00 PM New York – Abbott agreed to acquire Alere for $5.8 billion. Aetna net soared 38%. Cardinal Health net rose. Dominion Resources agreed to acquire Questar for $4.4 billion in cash. Hill-Rom net tumbled 60% but revenues surged 42%. Roper net jumped 12%. Sysco net soared 72%.

Tollbooth Index edged down 2.22 to 10,353.50.

Earnings Review

Abbott Laboratories (ABT) slipped 1.7% or 64 cents to $37.21 after the health care products maker agreed to acquire diagnostic-test company Alere Inc for about $5.8 billion.

Under the terms, Abbott agreed to pay $56 per share in cash, a premium of 51% to Alere stock’s closing price of Friday.

Alere Inc shares surged 45.2% to $54.

Aetna Inc (AET) increased 1.7% or $1.68 to $103.44 after the health care insurer reported total revenues in the fourth-quarter ending in December jumped 2% from a year ago to $15 billion.

Net income in the quarter soared 38% to $320.8 million or 91 cents per diluted share compared to $232 million or 65 cents per share from the same quarter last year.

Cardinal Health Inc (CAH) fell 1.4% or $1.13 to $80.22 after the healthcare services and products provider said revenues in the second-quarter ending in December soared 23% from a year ago to $31.4 billion.

Net income in the quarter jumped 13% to $326 million or 98 cents per diluted share compared to $289 million or 86 cents per share from the same quarter last year.

Dominion Resources, Inc (D) decreased 1.7% or $1.25 to $70.91after the electric and gas services provider agreed to acquire natural gas distributor Questar Corporation for about $25 per share or $4.4 billion in cash, represented 23% premium of the Questar’s closing price of Friday.

Dominion said the transaction is expected to close by the end of the year.

Separately today, Dominion reported revenues in the fourth-quarter ending in December soared 22.5% from a year ago to $82.7 million.

Net income in the quarter surged 164.2% to $25.1 million or 32 cents per diluted share compared to $9.5 million or 15 cents per share from the same quarter last year.

Hill-Rom Holdings, Inc (HRC) rose 38 cents to $49.26 after the medical technology company said revenues in the first-quarter ending in December surged 42% from a year ago to $661.2 million.

Net income in the quarter tumbled 60.3% to $4.8 million or 7 cents per diluted share compared to $12.1 million or 21 cents per share from the same quarter last year.

Roper Technologies Inc (ROP) declined 7.9% or $13.94 to $161.73 after the diversified technology company stated net sales in the fourth-quarter ending in December slid 0.3% from a year ago to $943.6 million.

Net income in the quarter jumped 12.2% to $208.6 million or $2.05 per diluted share compared to $185.9 million or $1.84 per share from the same quarter last year.

Sysco Corporation (SYY) surged 6.7% or $2.63 to $42.44 after the food distributor reported revenues in the second-quarter ending on December 26 rose 0.6% from a year ago to $12.2 billion.

Net income in the quarter soared 72.4% to $272.4 million or 48 cents per diluted share compared to $158 million or 27 cents per share from the same quarter last year.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc