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Market Update

ETE in $53 B Deal with Williams Co, Cigna Rejects $47 B Offer

Author: Mukesh Buch
Last Update: 10:22 AM ET June 22 2015

10:20 AM New York – Energy Transfer Equity agreed to acquire Williams Companies for $53.1 billion. Cigna rejected $47 billion takeover bid from Anthem. AK Steel lowered its earnings outlook. Sequential Brands agreed to acquire Martha Stewart Living for $353 million.

Tollbooth Index increased 0.6% or 60.44 to 10,877.59.

Earnings Review

AK Steel Holding Corporation (AKS) edged up 1 cent to $4.71 after the stainless and electrical steels producer forecasted to report a net loss per share for the second-quarter in the range of 37 cents to 42 cents.

Steel prices for the company’s products declined 7% from the previous quarter.

Cigna Corporation (CI) climbed 6.5% or $10.09 to $165.50 after the health services provider rejected $47 billion takeover bid from the rival Anthem Inc on June 20.

The chief executive officer David M. Cordani said the offer is “is inadequate and not in the best interests of Cigna’s shareholders.”

Energy Transfer Equity, L.P. (ETE) dropped 2.2% or $1.54 to $66.85 after the diversified energy services provider confirmed its proposal to acquire natural gas pipeline operator The Williams Companies, Inc. in an all-equity transaction valued $53.1 billion, including the assumption of debt and other liabilities.

ETE agreed to pay $64 per share, a 32.4% premium to the closing price of Williams as of June 19.

Ennis, Inc (EBF) increased 1% or 18 cents to $18.30 after the activewear maker said net sales in the first-quarter ending in April climbed 6.7% to $150.6 million from a year ago period.

Net income in the quarter soared 15% to $9.2 million or 36 cents per diluted share compared to $8 million or 31 cents from the same quarter last year.

Sequential Brands Group Inc gained 9 cents to $17.09 after the consumer brand company agreed to acquire Martha Stewart Living Omnimedia, Inc for $6.15 a share payable in 50% in stock and 50% in cash.

The offer valued the company at about $353 million, 21% to Martha Stewart''s closing of June 17.

The transaction is expected to close in the second-half of this year.

Shares of Martha Stewart Living Omnimedia, Inc tumbled 14% to $6.01.

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