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Market Update

Goldman Settles Mortgage Claims for $5 B, Yahoo Seeks Buyers


Author: Mukesh Buch
ticker.com
Last Update: 5:15 PM ET April 11 2016

2:00 PM New York – Annaly Capital agreed to acquire Hatteras Financial for $1.5 billion. Canadian Pacific Railway ended its bid to acquire Norfolk Southern. Goldman Sachs agreed to settle the U.S. regulator claims for $5 billion. Yahoo is forced to search buyers for its core assets.

Tollbooth Index edged up 4.70 to 10,665.33.

Earnings Review

Annaly Capital Management, Inc (NLY) slipped 1.1% or 12 cents to $10.30 after the mortgage real estate investment trust agreed to acquire Hatteras Financial Corp for $15.85 per share or about $1.5 billion.

Under the terms, the shareholders of Hatteras will receive $5.55 in cash and 0.9894 shares.

The transaction is expected to close by the end of the third-quarter of this year.

Canadian Pacific Railway Limited (CP) jumped 3.8% or $5.17 to $139.96 after the transcontinental railway operator terminated its bid to merge with the fourth-largest U.S. railroad operator Norfolk Southern Corp for about $28 billion.

Norfolk had voiced its concern over the last six months on several issues including “weak offer price” and resistance from its own customers and U.S. regulators and had said there is “no clear path to friendly merger at this time.”

Goldman Sachs Group Inc (GS) increased 1.2% or $1.84 to $152.23 after the U.S. Department of Justice said investment and brokerage services provider agreed to settle the claims of residential mortgage-backed securities between 2007 and 2009 and will pay in fines and claims totaling $5.06 billion.

The Department of Justice said that the investment company made false and misleading statements to potential investors during the period.

Handy & Harman Ltd rose 14 cents to $26.50 after the engineered niche industrial products maker agreed to acquire smaller rival SL Industries, Inc for about $158.4 million in cash.

Yahoo! Inc (YHOO) gained 1.3% or 47 cents to $36.55 on report the internet content provider and the London, U.K. listed Daily Mail and General Trust plc, newspaper and media group is in early talks with potential partners to bid for Yahoo''s core internet asset.

The Wall Street Journal reported that the U.K. based publishing group had approached private equity buyers to team up.

The company is reported to seek buyers for its core assets that are expected to fetch as much as $8 billion after impatient investors forced the CEO to invite bids by April 18.

In March, Starboard, an activist hedge fund had announced its intention to overthrow the current chief executive Marissa Mayer and the entire company board.

Yahoo revenues have plunge 50% and the decline is expected to get worse after royalty payments for ad and search technologies start to cease in 2017.

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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