Stocks in the News: AIG, Dish Network, HSBC
Britain's Prudential (PUK), which is not related to the American company of the same name, said Monday it will buy the Asian unit of American International Group (AIG) in a deal worth $35.5 billion that will allow AIG to pay back some of the money it owes U.S. taxpayers. AIG shares jumped over 15% in premarket trading. PUK shares skidded over 14%.
Dish Network (DISH) reported a better-than-expected fourth-quarter profit, even though its earnings declined 18% to $179 million, or 40 cents per share. Analysts had expected Dish to earn 32 cents a share. Dish also gained more subscribers for the third straight quarter. Shares advanced over 2.5% ahead of the bell.
HSBC Holdings (HBC) reported Monday that full-year profit rose 2% as sharply lower operating costs helped offset an increase in loan impairment charges, the Associated Press reported. Results, however, missed estimates as the group's Asia ex-Hong Kong business lagged the rest. Shares dropped over 7% in premarket action.
German's Merck KGaA (not U.S.'s Merck) said it's going to buy biotech Millipore (MIL) for $7.2 billion. MIL shares soared over 11% before the bell.
PepsiCo (PEP) said Monday it continues to expect 2010 through 2012 core constant currency earnings per share growth of 11% to 13% after it closed its $7.8 billion acquisition of its two largest bottlers.
MSCI (MXB) said it's going to buy RiskMetrics (RISK) for $1.55 billion, or $21.75 a share, in cash and stock. RISK shares rallied over 13% before the bell.
OSI Pharmaceuticals (OSIP) was offered $3.5 billion, or $52 a share, in cash in a hostile bid from Japan's Astellas Pharma. OSIP shares soared over 49% ahead of the bell.
EchoStar Satellite (SATS) and MVS Comunicaciones are acquiring Mexican satellite operator Satmex for $267 million in cash in a move to expand their direct-to-home TV service, Dish Mexico. EchoStar also said it narrowed its quarterly loss to $30.4 million, or 37 cents a share, as revenue rose to $557.9 million. Shares fell 2.7%.
Oshkosh (OSK) shares may be under pressure today after an unfavorable writeup in Barron's over the weekend, saying the stock price could decline by at least 20%, after huge gains in the past year and potential cutbacks in military spending. Shares dropped 2.9%.