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Market Update

Gilead in $11 B Deal with Kite Pharma, CBS to Buy Australia Based Network

Author: Mukesh Buch
Last Update: 11:55 AM ET August 28 2017

11:50 AM New York CBS Corp plans to acquire Australia-based Network Ten. Gilead Sciences to acquire immunotherapy developer Kite Pharma for $11.9 billion. Littelfuse intends to acquire smaller rival IXYS Corp for $750 million. Ulta Beauty results are ahead of expectation.

Tollbooth Index rose 17.80 or 0.2% to 12,235.77.

Earnings Review

CBS Corporation (CBS) increased 52 cents to $64.41 after the broadcasting services provider agreed to acquire the embattled Network Ten, one of three major commercial broadcast networks in Australia without disclosing of financial terms.

CBS also plans to make its service available in Canada in 2018.

Gilead Sciences, Inc jumped 2.4% or $1.76 to $75.55 after the drugs maker agreed to acquire immunotherapy developer Kite Pharma, Inc for $180 per share in cash or about $11.9 billion to diversify its portfolio in infectious-disease treatments for treating cancers.

The transaction is expected to close in the fourth-quarter of this year.

Littelfuse, Inc (LFUS) declined 5.2% or $9.28 to $168.98 after the chipmaker plans to acquire smaller rival IXYS Corporation for $23 in cash and 0.1265 per share, the transaction represents the value of about $750 million.

The transaction is expected to close in the first-quarter of 2018.

IXYS stock surged 36.4% to $21.75.

Ulta Beauty Inc (ULTA) dropped 2.1% or $4.36 to $208 after the beauty products retailer reported net sales in the second-quarter ending on July 29 jumped 20.6% from a year ago to $1.3 billion.

Comparable store sales in the quarter surged 11.7%, driven by 5.5% transaction growth and 6.2% growth in average ticket and retail comparable sales jumped 8.3%.

Net income in the quarter soared 26.9% to $114.2 million or $1.83 per diluted share from $90 million or $1.43 in the same quarter last year.

In the third-quarter, the retailer forecasted net sales in the range of $1.33 billion to $1.35 billion from the reported net sales of $1.13 billion in the same period a year ago and comparable sales to increase between 9% and 11% and diluted earnings per share in the range of $1.63 to $1.68.

Western Digital Corp (WDC) increased 70 cents to $90.95 after Reuter said a consortium led by data storage devices maker is close to acquiring chip unit of Japan-based Toshiba Corporation for about $17.4 billion.

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