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Market Update

Dollar General Lifts Family Dollar Bid and Prepares to Go Hostile


Author: Mukesh Buch
ticker.com
Last Update: 12:48 PM ET September 02 2014

12:30 PM New York – 1-800-Flowers plans to acquire Harry & David Holdings for $143 million. Dollar General raised its bid for Family Dollar to $9.1 billion. Halliburton agreed to settle Macondo well incident in $1.1 billion. Norwegian Cruise Line agreed to acquire Prestige Cruises for $3 billion.

Tollbooth Index gained 0.3% or 23.92 to 9,549.39.

Earnings Review

1-800-Flowers.com (FLWS) soared 11.6% or 60 cents to $5.75 after the florist and gift shop operator plans to acquire Harry & David Holdings Inc, gourmet food retailer, for about $142.5 million.

Conn’s, Inc. (CONN) tumbled 30.5% or $13.67 to $31.16 after the consumer products retailer reported total net sales in the second-quarter ending in July surged 30% to $353 million from a year ago period. Same store sales in the quarter climbed 12%.

Net income in the quarter dropped 8% to $17.7 million or 48 cents a diluted share compared to $19.2 million or 52 cents from a same quarter last year.

Dollar General Corp (DG) gained 56 cents to $64.55 after the discount retailer raised its bid for Family Dollar Stores Inc to $80 a share or $9.1 billion. The company also warned that it may take its appeal directly to shareholders if the revised offer was rejected by the management.

Family Dollar said the board will review revised offer of Dollar General but likely to stick with its deal with Dollar Tree.

Halliburton Company (HAL) rose 32 cents to $67.95 after the oilfield services provider agreed to a settlement of $1.1 billion with substantial majority of the plaintiffs’ class claims asserted against the company related to Macondo well incident in the Gulf of Mexico in April 2010.

The company agreed to pay in three installments over two years.

Kofax Limited (KFX) slipped 1.3% or 10 cents to $7.83 after the process application software developer reported total net sales in the year ending in July advanced 9% to $290 million from a year ago period.

Net income in the quarter jumped 12% to $11.5 million or 12 cents a diluted share compared to $10.3 million or 11 cents from a same quarter last year.

Separately, the company agreed to acquire Germany-based signature verification and fraud prevention software services provider Softpro GmbH for $34.7 million in cash.

Norwegian Cruise Line Holdings Ltd (NCLH) surged 10.4% or $3.45 to $36.76 after the cruise line operator agreed to acquire rival Prestige Cruises International Inc worth about $3.03 billion in cash and stock option.

The deal is expected to close in the fourth-quarter of this 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