Streetbeat News

Acquisitions Mergers

ILMN

Illumina Inc (NASDAQ:ILMN) is in a legal dispute with the European Commission over its $7.1 billion acquisition of Grail Inc. The Commission is using Article 22 to scrutinize the deal, which allows it to review acquisitions of smaller rivals by larger companies, even if they don't meet the EU merger revenue threshold. Illumina's challenge to the EU's decision to block the deal was unsuccessful in a lower tribunal last year. The Court of Justice of the European Union (CJEU) will receive a non-binding opinion on March 21, with a ruling expected in about six months. Illumina has also submitted a draft registration statement for the potential divestiture of GRAIL to the SEC under an order from the European Commission. Illumina's stock (ILMN) saw a slight increase of 0.19% to $117.86.

Portfolio Pulse from Vandana Singh

December 12, 2023 | 7:12 pm

CAVA

DIA

ENPH

FSLR

JCI

LCID

MRVI

ORCL

QQQ

SEDG

SPY

TAN

XLE

XLF

U.S. stocks are approaching all-time highs with the VIX at nearly 3-year lows ahead of the Fed meeting. Inflation data for November showed a slight decrease, aligning with estimates. The U.S. dollar index dipped slightly, while Treasury yields were stable. Gold and Bitcoin declined, and oil prices faced downward pressure. SPY, DIA, and QQQ ETFs saw modest gains, while XLF rose and XLE fell. Solar ETF TAN dropped significantly. LCID, ORCL, CAVA, MRVI, SEDG, ENPH, FSLR, and JCI stocks had notable movements due to various company-specific news.

Portfolio Pulse from Piero Cingari

December 12, 2023 | 6:56 pm

MKKGY

PFE

SGEN

Pfizer Inc has received all necessary regulatory approvals to complete its $43 billion acquisition of Seagen Inc. To address FTC concerns, Pfizer agreed to donate Bavencio royalties to the American Association for Cancer Research. Pfizer will reorganize into three divisions, with the Pfizer Oncology Division integrating oncology operations from both companies. Merck KGaA regained rights to Bavencio, replacing profit share with a 15% royalty to Pfizer. Pfizer's Angela Hwang will leave the company, and the new structure will be effective January 1, 2024. Pfizer will provide financial guidance for 2024 in an upcoming webcast.

Portfolio Pulse from Vandana Singh

December 12, 2023 | 6:04 pm

LHX

L3Harris Technologies (NYSE:LHX) outlined its financial goals and value creation strategy at its 2023 Investor Day, targeting $23B in revenue, 16% segment operating margins, and $2.8B free cash flow by 2026. The company plans to focus on operational improvements, reduce expenses, and enhance productivity to drive margin expansion and cash flow growth. L3Harris will halt its M&A program to strengthen its balance sheet and return excess capital to shareholders after reaching a leverage target by the end of 2024. The capital deployment priorities include R&D investments, capital expenditures, debt reduction, and shareholder returns.

Portfolio Pulse from Benzinga Newsdesk

December 12, 2023 | 6:02 pm

EFHT

ECD Auto Design and EF Hutton Acquisition Corporation I announced that their combined company will start trading on NASDAQ under the symbols 'ECDA' and 'ECDAW' from December 13, 2023. The new entity, resulting from a business combination, will be named 'ECD Automotive Design Inc.' ECD management will ring the NASDAQ opening bell on the same day.

Portfolio Pulse from Benzinga Newsdesk

December 12, 2023 | 6:01 pm

AAPL

AMZN

KKR

MUSQ

SONY

SPOT

KKR & Co Inc is considering the sale of its music catalog, which includes 65,000 songs, as royalty valuations decline due to high interest rates. The catalog was acquired from Kobalt Capital for $1.1 billion in 2021. Music streaming services like Spotify are experiencing revenue growth, with Spotify's stock up 151% since the start of the year. In contrast, the MUSQ Global Music Industry ETF has fallen 2.8% since its launch in July. Sony Music's share price is up 18% this year, while Warner Music is down slightly.

Portfolio Pulse from Neil Dennis

December 12, 2023 | 5:55 pm

DRIP

GUSH

MRO

OXY

USO

XOM

Oil and gas stocks are declining due to a record supply that is outpacing demand, leading to a sector sell-off. The Direxion Daily S&P Oil & Gas Exp & Prod Bear 2X Shares (DRIP) rose by 4.5% as it benefits from the downturn in the sector. OPEC+ nations' new oil cuts and U.S. record oil production have not prevented the decline. Analysts have turned bearish, with downgrades for Marathon Oil (MRO) by Morgan Stanley and a lowered price target for Exxon Mobil (XOM) by JP Morgan. DRIP, an inverse double-leveraged ETF, is in a bull cycle and could rally towards $14.50. Direxion also offers a bullish counterpart, the Direxion Daily S&P Oil & Gas Exp & Prod Bull 2X Shares (GUSH), for traders bullish on the sector.

Portfolio Pulse from Melanie Schaffer

December 12, 2023 | 5:47 pm

LSXMK

SIRI

Liberty Media Corp (LSXMK) and Sirius XM Holdings Inc (SIRI) have agreed to merge Liberty Media's Liberty SiriusXM tracking stock group with SiriusXM to form a new consolidated public company, retaining the SiriusXM name and brand. The new entity, New SiriusXM, will have one series of common stock and remain listed on the Nasdaq under the ticker 'SIRI'. The transaction involves a redemptive split-off with a subsidiary holding SiriusXM shares and $1.7 billion in net liabilities. Post-transaction, former LSXM stockholders will own approximately 81% of New SiriusXM, with the remaining 19% owned by SiriusXM minority stockholders. SIRI shares were up 2.39% at $5.14.

Portfolio Pulse from Anusuya Lahiri

December 12, 2023 | 5:39 pm

WBA

Walgreens Boots Alliance Inc. is considering a potential exit from its UK-based Boots drugstore chain, which could be valued at about £7 billion. The company is exploring options, including a London IPO, and may invite fresh offers for Boots. The process is expected to start next year at the earliest. Walgreens, now in cost-cutting mode under new CEO Tim Wentworth, had its credit rating cut to junk by Moody's due to high debt. The company previously attempted to sell Boots in 2022 but abandoned the effort due to unsatisfactory valuations and a turbulent credit market.

Portfolio Pulse from Benzinga Newsdesk

December 12, 2023 | 5:32 pm

PERI

Perion Network Ltd (NASDAQ:PERI) has completed the acquisition of Hivestack Inc for $100 million in cash and up to $25 million in performance-based payments. Hivestack is a leader in programmatic digital out-of-home (DOOH) advertising technology. The acquisition enables Perion Network to tap into the DOOH market, which is known for delivering real-time, immersive ads in public spaces. Perion Network's financials are strong, with $523.6 million in cash as of September 30 and a 17% year-on-year revenue growth in Q3 FY23, beating consensus estimates. PERI stock has risen by approximately 9% year-to-date and was up 2.31% to $27.94 in the last check on Tuesday.

Portfolio Pulse from Anusuya Lahiri

December 12, 2023 | 5:20 pm