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The Blackstone Group L.P. Message Board

  • sam_0534 sam_0534 Dec 12, 2013 3:59 PM Flag

    BX taking more profits

    Consumer Stocks Unable to Find Traction Today; Pinnacle Foods Slips After Blackstone Pares Ownership Stake 12/12 12:51 PM

    03:51 PM EST, 12/12/2013 (MT Newswires) -- Top Consumer Stocks
    WMT -0.76%

    MCD -1.22%

    DIS -1.15%

    CVS -0.70%

    KO -2.27%

    Consumer stocks are broadly lower this afternoon with shares of consumer staples companies in the S&P 500 dropping nearly 1.3%. Shares of consumer discretionary firms in the S&P 500 are down about 0.3%.
    In company news, Pinnacle Foods Inc (PF:$26.41,00$-0.80,00-2.94%) is down 2.6% at $26.51 a share after late yesterday pricing a secondary offering of 17 million shares of its common stock - all owned by funds affiliated with Blackstone Group (BX:$28.97,00$-0.18,00-0.62%) - at $26.75 apiece and generating around $451.5 million in gross proceeds.
    The BX funds also gave options to underwriters to buy up to 2.5 million additional shares to cover possible overallotments.
    BX by far is and will remain PF's largest individual shareholder, purchasing the company in 2007 for $2.16 billion and building it out through additional purchases, including Birds Eye Foods two years later as well as other brands such as Duncan Hines and Van de Kamp's.
    BX owned 95% of the company with over 79.5 million shares prior to its April 4 initial public offering this year. That got cut down to 68% after the IPO when the company sold 33.35 million shares, including overallotments, and will now be whittled down to between 53.4% to 51.2%, depending on whether underwriters exercise their options in the current offering.
    BX shares are down 0.75% at $28.93 each.
    In other sector news,
    (+) CWTR, Net loss of $0.79 per share, ex items, beats analyst view by $0.13. Q3 revenue falls 17.9% year over year to $154.5 mln, trailing the Capital IQ consensus by $5.56 mln.
    (-) LULU, Issues downside Q4 guidance, forecasting EPS of $0.78 to $0.80 on $535 mln to $540 mln in revenue, trailing estimates by at least $0.04 per share and $33.57 mln, respectively. Also trims FY14 earning, revenue guidance.

    Get more news on:SYMBOLS: PF, BX, VRA, LULUNEWS TYPE: Investing IdeasSECTORS: Consumer Discretionary, Specialty Retail, Textiles, Apparel and Luxury Goods, Financials, Capital Markets

    Sentiment: Strong Buy

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