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Market Update

GE to Buy Milestone Aviation, NetScout in Deal with Danaher


Author: Mukesh Buch
ticker.com
Last Update: 12:25 PM ET October 13 2014

12:40 PM New York – Danaher agreed to sell its communications business to NetScout for $2.6 billion. GE’s finance division is in talks to acquire Milestone Aviation for $1.8 billion. Steris agreed to buy Synergy for $1.9 billion. Targa Resources acquired two assets of Atlas Energy for $6 billion.

Tollbooth Index fell 0.37 to 8,988.98.

Earnings Review

Danaher Corporation (DHR) gained 1.1% or 81 cents to $72.67 after the medical, industrial and commercial products maker agreed to sell its communications business to NetScout Systems Inc for $2.6 billion in stock.

Under the terms, Danaher will either spin-off or split-off the businesses into a unit, which will then merge with NetScout.

Shareholders of Danaher will receive outstanding shares of NetScout for 59.5% or $2.6 billion in the combined company.

The transaction is expected to close in 2015.

Danaher also forecasted diluted earnings per share for the third quarter 2014 of about 90 cents and core revenue growth of approx 3%.

General Electric Company (GE) fell 10 cents to $24.17 after the U.S. conglomerate’s finance division is in talks to acquire helicopter-leasing company Milestone Aviation Group Ltd for $1.78 billion.

The transaction is expected to close in 2015.

Steris Corporation (STE) gained 2% or $1.12 to $57.40 after the healthcare, pharmaceutical company agreed to buy Synergy Health Plc for about $1.9 billion or £1.2 billion. Steris is offered 439 pence in cash and 0.4 of shares in the combined company for every Synergy share that represent 39% premium to trading price last Friday.

The Synergy’s shares surged 30% to £18.20.

The transaction is expected to close by March 2015.

Targa Resources Corp (TRGP) plunged 5.6% or $6.81 to $114.84 after the natural gas supplier agreed to buy Atlas Energy LP''s midstream assets for $1.9 billion, and its subsidiary Targa Resources Partners LP agreed to acquire Atlas Pipeline Partners LP for $4 billion.

The deal is expected to close early next 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