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Market Update

Reynolds Buys Lorillard for $27.4 B, Albemarle Acquires Rockwood


Author: Mukesh Buch
ticker.com
Last Update: 12:36 PM ET July 15 2014

12:30 PM New York Albemarle agreed to acquire Rockwood Holdings for $6.2 billion. Comerica net rose 5%. Goldman Sachs profit climbed 5%. Johnson & Johnson lifted earnings outlook. JPMorgan net declined 8%. Reynolds American buys Lorillard for about $27.4 billion.

Tollbooth Index slipped 0.5% or 43.51 to 9,460.18.

Earnings Review

Albemarle Corporation (ALB) declined 3.2% or $2.33 to $70.29 after the specialty chemicals maker agreed to acquire all outstanding shares of Rockwood Holdings, Inc. in a cash and stock deal for about $6.2 billion.

Under the terms, each outstanding share of Rockwood will be exchanged for $50.65 in cash and 0.4803 of a share of Albemarle share. The deal values Rockwood at $85.53 a share, a 13% premium on yesterday''s closing price.

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

Comerica Inc (CMA) increased 44 cents to $51 after the financial service provider stated net interest income in the second-quarter ending in June edged up 0.5% to $416 million from a year ago.

Net income in the quarter increased 5% to $151 million or 80 cents a diluted share compared to $143 million or 76 cents from a year earlier.

The company said total loan in the quarter jumped 4% to $46.7 billion and total deposits increased 1% to $53.4 billion from last quarter.

Goldman Sachs Group Inc (GS) gained $1.47 to $168.46 after the investment bank reported total net revenue in the second-quarter ending in June jumped 6% to $9.13 billion from a year ago period.

Net income in the quarter climbed 5% to $1.95 billion or $4.10 a diluted share compared to $1.86 billion or $3.70 from a year earlier.

As of June, the bank said total asset were $860 billion dropped of $56 billion from March 2014.

Johnson & Johnson (JNJ) slipped 1.5% or $1.55 to $103.83 after the health care products maker reported sales in the second-quarter ending in June climbed 9.1% to $19.50 billion from a year ago.

Net income in the quarter soared 12.9% to $4.33 billion or $1.51 a diluted share compared to $3.83 billion or $1.33 from a year ago period.

The company lifted its earnings per share guidance for the year between $5.85 and $5.92.

JPMorgan Chase & Co (JPM) climbed 3.8% or $2.13 to $58.42 after the financial services provider said total net revenue in the second-quarter ending in June dropped 3% to $24.45 billion from same quarter a year ago.

Net income in the quarter declined 8% to $5.99 billion or $1.46 a diluted share compared to $6.50 billion or $1.60 from a year earlier.

Reynolds American, Inc (RAI) plummeted 4.2% or $2.62 to $60.52 after the cigarette maker said it plans to acquire its rival Lorillard for about $27.4 billion, lower than expected price estimated by several analysts on Wall Street.

Shares of Lorillard Inc plunged 8.1% to $61.76.

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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