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Market Update

Williams and Energy Transfer in $37.7 B Deal, Alcoa to Split


Author: Mukesh Buch
ticker.com
Last Update: 1:02 PM ET September 28 2015

12:55 PM New York Alcoa will split into two publicly traded companies. Apple sold more than 13 million iPhone 6 versions in three days of launch. Cypress Semiconductor plans to acquire Atmel for $4.6 billion. Comcast will acquire 51% stake in Universal Studios Japan theme park.

Tollbooth Index dropped 194.05 or 1.9% to 10,085.02.

Earnings Review

Alcoa Inc (AA) jumped 4.6% or 41 cents to $9.48 after the aluminum producer said it will split into two publicly traded companies; the struggling aluminum smelting operations and faster-growing lightweight metal producers for aerospace and automotive business.

The transaction is expected to close in the second-half fiscal 2016.

Chief Executive Officer Klaus Kleinfeld will become the chief executive officer of the new unnamed company.

Apple Inc (AAPL) slipped $1.10 to $113.61 after the mobile and electronic products maker said it sold more than 13 million iPhone 6s and iPhone 6s Plus models in the first three days of launch since Sept 25.

Cypress Semiconductor Corporation (CY) declined 4.5% or 39 cents to $8.37 after the programmable chipmaker plans to acquire its rival Atmel Corporation for higher offer than the Dialog''s cash-and-stock deal of about $4.6 billion.

Earlier this month, Atmel Corporation agreed to sell merge with Dialog Semiconductor Plc.

Comcast Corporation (CMCSA) decreased 1.7% or 96 cents to $55.58 after the cable operator confirmed that it will acquire 51% stake in USJ Co, the operator of the Universal Studios Japan theme park in Osaka for about $1.5 billion or 180.42 billion yen.

Cal-Maine Foods Inc (CALM) tumbled 10.3% or $5.91 to $51.73 after the shell eggs producer said revenues in the first-quarter ending on August 29 soared 70.9% from a year ago to $609.9 million.

Net income in the quarter surged to $143 million or $2.97 per diluted share compared to $27.7 million or 57 cents from the same quarter last year.

Williams Companies Inc WMB)) plunged 9.7% or $4.04 to $37.56 after the energy infrastructure developer agreed to be acquired by Energy Transfer Equity LP for about $37.7 billion in a stock-and-cash deal, including debt, three months after it rebuffed Energy Transfer''s $53.1 billion offer.

Under the terms of the transaction, Energy Transfer Corp LP will acquire Williams at an implied current price of $43.50 per Williams share.

The transaction is expected to close in the first-half of 2016.

Energy Transfer Equity LP stock tumbled 9.3% to $21.07.

Separately, today the company signed a termination agreement with Williams Partners L.P. from the previously announced merger agreement and agreed to pay a termination fee to Williams Partners of about $428 million.

Kraton Performance Polymers Inc plummeted 6.7% or $1.22 to $17.13 after the rubber producer said it intends to acquire privately held specialty chemicals producer Arizona Chemical Holdings Corp for $1.37 billion in cash.

Nexstar Broadcasting Group, Inc (NXST) gained 41 cents to $44.93 after the diversified media company offered to buy local-television station owner Media General Inc for $14.50 per share in a cash and stock deal valued at about $4.1 billion.

The offer price of $10.50 per share in cash and 0.0898 per Nexstar shares represented 30% premium on closing share price of September 25.

Media General earlier this month said it agreed to acquire rival Meredith for about $2.4 billion in cash and stock.

Vail Resorts, Inc (MTN) slid 1 cent to $107.50 after the ski resort operator said total revenues in the fourth-quarter ending in July soared 19.6% from a year ago to $162.1 million.

Net loss in the quarter narrowed to $70.1 million or $1.92 per diluted share compared to $75.4 million or $2.08 from the 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