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Market Update

Rising Asian Competition Forces HP Split, Actavis to Buy Durata

Author: Mukesh Buch
Last Update: 12:26 PM ET October 06 2014

12:25 PM New York Actavis agreed to acquire Durata Therapeutics for $675 million. Becton, Dickinson agreed to buy CareFusion for $12 billion. Chevron agreed to sell 30% stake of key shale play to Kuwait Foreign Petroleum for $1.5 billion. HP plans to split computer and printer businesses from enterprise division.

Tollbooth Index slid 0.1% or 11.17 to 9,271.44.

Earnings Review

Actavis Plc (ACT) slipped $2.27 to $243.80 after the Ireland-based generic drug-maker agreed to acquire specialty pharmaceutical company Durata Therapeutics Inc. the deal valued of about $675 million.

Shareholders of Durata would receive $23 per share in cash, a 66% premium of closing price on Friday. Actavis anticipates closing the transaction in late 2014 or early 2015.

Shares of Durata Therapeutics Inc surged 71.8% to $23.85.

Becton, Dickinson and Co (BDX) surged 7% or $8.19 to $124.03 after the medical technology company agreed to buy infusion pumps and other medical devices maker CareFusion Corporation for $12.2 billion or $49 a share in cash and 0.0777 in stock.

Chevron Corporation (CVX) dropped 42 cents to $117.33 after the petroleum explorer and refiner agreed to sell 30% stake of key shale play to a subsidiary of Kuwait Foreign Petroleum Exploration Co. for $1.5 billion.

Hewlett-Packard Company (HPQ) climbed 4.6% or $1.63 to $36.83 after the computer peripherals maker plans to split its personal computer and printer division from its corporate hardware and services operations.

The transaction is expected to be completed by the end of fiscal 2015.

The company expected diluted earnings per share for the year in the range of $2.60 to $2.64.

For the fiscal 2015, Hewlett-Packard forecasted diluted earnings per share between $3.23 and $3.43.

H & R Block Inc (HRB) declined 5.6% or $1.79 to $29.86 after the tax services provider said the sale of its banking business would not be approved by regulators before end of tax season next year.

Hilton Worldwide Holdings Inc (HLT) fell 18 cents to $24.14 after the hotel operator agreed to sell the Waldorf Astoria New York hotel to Chinese insurer Anbang Insurance Group Co. for $1.95 billion.

The Walt Disney Company (DIS) rose 30 cents to $88.75 after the diversified entertainment company agreed to invest about $1.25 billion or 1 billion in to France-based Euro Disney SCA, the troubled theme park operator.

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