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Market Update

BP Settles Oil Spill Claims in $20.8 B, American Apparel Files Bankruptcy

Author: Mukesh Buch
Last Update: 1:32 PM ET October 05 2015

1:15 PM New York – BP settled claims for Gulf of Mexico oil spill for $20.8 billion. Nelson Peltz invested $2.5 billion in GE and becomes one of top 10 investors. American Apparel filed for Chapter 11 bankruptcy. Suncor made a hostile acquisition offer to Canadian Oil Sands for C$4.3 billion.

Tollbooth Index gained 75.79 or 0.7% to 10,408.52.

Earnings Review

American Apparel Inc (APP) was halted at 11.2 cents after the branded fashions apparel and accessories retailer today filed for Chapter 11 bankruptcy and reached agreements with its creditors and lenders will provide approx $90 million in debtor-in-possession financing.

The company estimated to reduce debt to $135 million from $300 million through the elimination of over $200 million of its bonds in exchange for equity.

BP Plc jumped 3% or 99 cents to $33.51 after the oil and gas producer today settled its Deepwater Horizon oil spill linked fines and charges in the Gulf of Mexico in 2010 for about $20.8 billion with the U.S. government and resolved all federal and state claims.

General Electric Company (GE) soared 4.1% or $1.03 to $26.51 after the activist shareholder Nelson Peltz controlled Trian Fund Management LP became one of the company’s top 10 shareholders as it acquired about 1% stake or invested $2.5 billion in the diversified industrial conglomerate.

GE raised its full-year industrial operating earnings per share guidance to between $1.13 and $1.20 and plans to return more than $90 billion to investors through 2018

The conglomerate said it is on track to closing $100 billion of GE Capital asset sale this year.

Separately the conglomerate launched its own science fiction podcast series to raise its profile among a younger, tech-savvy audience andwill release the first of eight episodes.

Suncor Energy Inc (SU) slipped 1.3% or 34 cents to $26.52 after the Canada-based energy company made a hostile acquisition offer to Canadian Oil Sands Ltd for about C$4.3 billion and offered the shareholder to receive 0.25 of a Suncor.

The company said the offer will be open till December 4, unless extended or withdrawn.

Teledyne Technologies Incorporated (TDY) fell 60 cents to $89.65 after the industrial technology provider lowered its diluted earnings per share forecast for the third-quarter to a range between $1.30 and $1.33 compared to the earlier estimated range of $1.45 to $1.48.

For the year, the company forecasted diluted earnings per share in the range of $5.10 to $5.17 from the previous guidance between $5.60 and $5.65.

The company is schedule to release its third-quarter financial results on October 29 before the market open.

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