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Market Update

Merck to Buy Cubist for $9.5 B, Blackstone Sells California Buildings


Author: Mukesh Buch
ticker.com
Last Update: 12:09 PM ET December 08 2014

12:00 PM New York Blackstone Group agreed to sell its portfolio of 26 office buildings in Northern California for $3.5 billion. Ingles Markets net climbed 13%. Merck agreed to acquire Cubist Pharmaceuticals for about $9.5 billion. McDonald November sales plunged. Vail Resorts net loss narrowed.

Tollbooth Index slid 0.1% or 10.89 to 9,985.01.

Earnings Review

The Blackstone Group LP (BX) fell 15 cents to $33.79 after the financial advisory service provider agreed to sell its Northern California portfolio of 26 office buildings for $3.5 billion to Los Angeles-based Hudson Pacific Properties Inc.

Ingles Markets, Inc (IMKTA) soared 5.3% or $1.53 to $30.16 after the supermarket and convenience store operator said net sales in the fourth-quarter ending on September 27 jumped 1.7% to $964.8 million from a year ago period. Comparable store sales in the quarter increased 0.9%.

Net income in the quarter climbed 12.8% to $17.6 million or 79 cents a diluted share compared to $15.6 million or 68 cents from a same quarter last year.

Merck & Co., Inc (MRK) slid 4 cents to $61.45 after the pharmaceuticals maker agreed to acquire Cubist Pharmaceuticals Inc for $102 a share, a 25% premium from Fridays closing price or for about $9.5 billion.

The acquisition is expected to close in the first-quarter of 2015.

Cubist stock surged 36% as much as $74.36 before the regular market trading hours began.

McDonald''s Corporation (MCD) declined 3.4% or $3.31 to $92.97 after the quick service restaurant operator announced global comparable sales in November decreased 2.2%. System-wide sales in the month plunged 6%.

The company said comparable sales in the U.S. declined 4.6% and comparable sales in Europe slumped 2% while sales in Asia/Pacific, Middle East and Africa dropped 4%.

Triangle Petroleum Corporation plunged 10% or 36 cents to $3.24 after the oil and gas explorer said total revenues in the third-quarter ending in October soared 96.8% to $174.2 million from a year ago period.

Net income in the quarter tumbled 46.2% to $25.4 million or 26 cents a diluted share compared to $47.2 million or 50 cents from a same quarter last year.

Vail Resorts, Inc (MTN) slipped 2% or $1.84 to $89.59 after the ski resort operator reported total revenues in the first-quarter ending in October dropped 4% to $128.3 million from a year ago period.

Net loss in the quarter narrowed to $64.3 million or $1.77 a diluted share compared to $73.4 million or $2.04 from a same quarter last 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