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$55 Million Bank Changes Failed by United Parcel Service, Inc.(NYSE:UPS) – TNTE, UBS, BAC, DB1 & NYX



Northern, WI 1/15/2013 (usmarketbuzz) – The block on the deal between United Parcel Service, Inc.(NYSE:UPS) and TNT Express NV(AMS:TNTE) will be quite a blow to investment advisers. The European Commission told United Parcel Service, Inc.(NYSE:UPS) on January 11th that it would pull the plug on this deal. Investment advisers like Morgan Stanley, UBS AG (USA) (NYSE:UBS) and the Bank of America Corp (NYSE:BAC) who expected to roll in close to $55 million will now have to settle for only 10% of the expected amount. This was one of the largest acquisitions for TNT Express NV(AMS:TNTE) and was worth $6.18 billion. Peter Hahn, a lecturer at Cass Business School in London and a former managing director at Citigroup Inc. agrees that this is bad news for all the banks and also hopes for better scrutiny of consolidation regulations.

According to analyst Helane Becker the acquisition was worth a lot and was a pretty complex deal to be approved very easily. The EC mentioned its concerns with overnight package delivery services in Europe. The United Parcel Service, Inc.(NYSE:UPS) also seem to have given up as any further concession seems to be futile. They have already offered remedies in various countries and have also provided access to their flight networks.   In her research note, Helane Becker also mentioned that the timeline for this transaction was too unrealistic and was the main cause for its failure.

This is not the first time the EU has vetoed a big deal. A similar incident occurred in February last year when it put an end to the deal between Deutsche Boerse AG

(ETR:DB1) and NYSE Euronext ‘s(NYSE:NYX) $9.5 billion deal. The two giants hoped to strike a deal and create the world biggest exchange. The EU concluded that this merge would pack a blow to competition and put an end to the deal. The between TNT Express NV(AMS:TNTE) and United Parcel Service, Inc.(NYSE:UPS) which set out to become the 14th largest intercontinental deal has to now settle with being in the biggest deals gone wrong.

Not only did the banks suffer from this block, TNT Express NV(AMS:TNTE) also hit its lowest share value following the EC’s notice. Their shares fell by a good 51% causing losses worth 2.3 billion euros. The shares of the packaging giant closed at 8.25 euro on Friday. The shares closed at 4.84 euros yesterday. In addition to that UPS will have to pay close to 200 million euros as termination charges once the deal is officially stopped by the EC.

The EC is trying to find a packaging company that is large enough to fill the TNT void. UPS planned on selling its assets to DPD parcel- distributors to create a practical competitor in the market. The hedge funds have also received a shocking blow and have reached the highest level yet in the beginning of a year in the last 7 years. According to Joel Ray, a Transport intelligence analyst, TNT should become a pure road operator as the air business is in decline and is infact, an expensive affair.

The shares of United Parcel Service, Inc.(NYSE:UPS) were up 1.69% by and closed at $79.24

The shares of TNT Express NV(AMS:TNTE) were up by 2.95%and closed at $4.94

The shares of UBS AG (USA) (NYSE:UBS) were up 0.29% by and closed at $17.34

The shares of Bank of America Corp(NYSE:BAC) were down by 1.38% and closed at $11.47

The shares of Boerse AG(ETR:DB1) were down by 0.49% and closed at €46.56

The shares of NYSE Euronext(NYSE:NYX) were up by 0.03% and closed at $32.74


Top 3 Gainers: Zynga (NASDAQ:ZNGA), Eros International (NYSE:EROS), Borqs Technologies’ (BRQS)




Zynga (NASDAQ:ZNGA) is up 2.5% after Benchmark reiterated its Buy rating in a look-ahead at Q2 earnings. The firm’s expecting a beat and solid guidance for Q3, and it’s raising its guidance for the fiscal year.

Tailwinds from the pandemic won’t dissipate easily, Benchmark suggests, and the videogame maker’s acquisition of Peak (and with it new “forever franchises” in Toon Blast and Toy Blast) will drive audience, bookings, margins and free cash flow, it says. The firm has an $11 price target, now implying 14% upside.

Eros International (NYSE:EROS) is up 5.8% today, making up the last week’s lost ground, after news that its streaming service Eros Now is partnering with Sony India (SNE +2.3%).

That will mean Eros Now’s app is pre-installed on selected Sony smart televisions in India, along with availability on a large base of existing models (Bravia E series and newer).

The country over the past year has seen a 25% growth in demand for smart TVs, fueled by overall industry growth of 15%, to a record 15M units/year.

Borqs Technologies’ (BRQS) personal safety tracker sees strong market with increased orders from the electronics retail chain in the US.

The boost in product demand comes ahead coronavirus pandemic that provides company to expect delivery of 250K units this year. It reflects over 3x the volume delivered in 2019, the year of its launch.

Borqs’ mobile personal safety devices designed particularly for senior citizens come with panic button, location tracking, and fall detection.

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Biotech movers: Pfizer Inc. (PFE), Celgene Corporation (CELG)



Pfizer Inc. (PFE) said on Thursday it received a request for documents as part of a U.S. investigation related to quality issues involving the manufacture of auto-injectors at its Meridian Medical Technologies site.

Pfizer, in a regulatory filing, said it would be producing records in response to the civil investigative demand from the U.S. Attorney’s office for the Southern District of New York.

Why ASDN Could Massively Outperform PFE in 2019

Meridian, a unit of Pfizer that manufactures EpiPen injectors used to deliver an emergency allergy antidote, has been hit by a series of manufacturing problems in recent years. Mylan NV, which markets EpiPens, has recalled tens of thousands of the devices after complaints that some had failed to activate.

Bristol-Myers Squibb has been meeting with shareholders in Boston and New York over the last two weeks to try to salvage its $74 billion purchase of cancer drugmaker Celgene Corporation (CELG), the biggest acquisition announced so far this year.

Why Investors Are Calling ASDN the CELG of the Sky!

The deal, announced in January, was hard sell to Bristol shareholders from the start. The acquisition adds about $32 billion in fresh debt to Bristol’s balance sheet while assuming $20 billion in Celgene’s debt, the companies said at the time. After factoring in debt, the acquisition was the largest health-care deal on record, according to data compiled by Refinitiv.

Now, hedge funds Wellington Management and Starboard Value say the deal doesn’t sit well with them. Bristol has sent executives to New York to meet with institutional investors several times over the last two weeks and met with investors in Boston on Wednesday and Thursday, according to a person who briefed on the meetings.

Bristol-Myers declined to comment.

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Big Losers: Corbus Pharmaceuticals Holdings, Inc. (CRBP), Petróleo Brasileiro S.A. – Petrobras (PBR)



Corbus Pharmaceuticals Holdings, Inc. (CRBP)’s shares slumped as much as 16% to $6.94 on huge volume. The stock has been showing intense sell off suddenly after a bearish article on by Alpha Exposure.

The article stated that Corbus has ties to investors convicted of or alleged to have committed securities fraud. We believe lenabasum has failed its major trials in SSc and CF. Lenabasum was also denied Breakthrough Therapy Designation in SSc. We believe lenabasum will fail in its pivotal SSc and Phase 2b CF trials. We are short Corbus with a price target of $0.50.

Wow the future of Autonomous flight is finally here with the launch of ASDN passenger drone Elroy

Petróleo Brasileiro S.A. – Petrobras (PBR) is expanding its ambitious divestment program and has “bold” plans for sales, the Brazilian state-run oil company’s chief executive said after the firm posted its first annual profit in five years.

On a conference call with analysts to discuss fourth-quarter results, CEO Roberto Castello Branco said selling non-core assets will be key to deleveraging.

Petrobras, as the company is known, can reduce its ratio of net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, to 1.5 or even to 1, he added.

The University of Chicago-educated CEO, who took the reins in early January, has long been vocal about the need to slim down the sprawling firm and focus on core activities such as exploration and production. Thursday’s comments were some of his most assertive on the matter.

Why Investors Are Calling ASDN the TPC of the Sky!

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