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Market Update

Southern Co Buys AGL Resources for $12 B; Belk, Xerox Decline


Author: Mukesh Buch
ticker.com
Last Update: 12:37 PM ET August 24 2015

12:35 PM New York Southern Co agreed to acquire AGL Resources for $12 billion. Belk agreed to be acquired by Sycamore Partners for $3 billion. Cobalt Intl agrees to sell its 40% stakes in two offshore oil exploration blocks in Angola to Sonangol for $1.8 billion. DaVita agreed to acquire worldwide rights of talazoparib for $410 million.

Tollbooth Index declined 66.04 or 0.6% to 10,176.16.

Earnings Review

Belk Inc (BLKIA) plunged 14.4% or $11.25 to $66.75 after the family owned fashion stores operator agreed to be acquired by private-equity firm Sycamore Partners in a deal valued of about $3 billion.

Under the terms, shareholders of the department store chain will receive $68 a share in cash.

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

Cobalt International Energy, Inc (CIE) gained 1.9% or 14 cents to $7.37 after the deepwater oil and gas producer agrees to sell its 40% stakes in a pair of Angolan offshore blocks to the state-run oil company Sonangol for $1.75 billion.

DaVita HealthCare Partners Inc (DVA) slumped 2.2% or $1.68 to $74.36 after the dialysis services provider agreed to acquire Colorado-based Renal Ventures Limited, LLC, including all dialysis centers owned by Renal Ventures for about $415 million.

Medivation Inc (MDVN) dropped 4.3% or $3.89 to $87.54 biopharmaceutical group agreed to acquire worldwide rights of talazoparib (formerly BMN 673) from BioMarin Pharmaceutical Inc for about $410 million.

Southern Company (SO) slipped 3.7% or $1.71 to $44.08 after the public utility provider agreed to acquire AGL Resources Inc for about $12 billion.

AGL shareholders will receive $66 in cash for each share, a premium of 36.3% over the average stock price in last 20 trading days through August 21.

The transaction is expected to close in the second-half of the next-year.

Shares of AGL Resources Inc surged 32.6% to $63.50.

Xerox Corporation (XRX) declined 5.4% or 58 cents to $10.12 after the outsourcing services provider agreed to acquire RSA Medical for an undisclosed amount.

The transaction is expected to close in the third-quarter of this 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