2:32 pm Stock indices extend below narrow midday ranges -- Dow -300, S&P -36, Nasdaq Comp -72 (SPY) : The S&P is back near a short term support at 1593/1592 (session low 1592.75).
2:30 pm Clearwire: Special Committee and Board of Directors change recommendation in favor of Sprint (S) merger based on revised offer of $5.00 per share (stock halted) (CLWR) : Co announced that its board of directors, based on the unanimous recommendation of the Special Committee consisting of independent, non-Sprint-affiliated directors, recommended that stockholders accept a revised offer from Sprint (S) to acquire the approximately 50 percent stake in the Company it does not currently own for $5.00 per share, valuing Clearwire at more than $14 billion, or $0.30 per MHZ pop. As such, the board of directors present unanimously recommended that stockholders vote FOR the proposed transaction with Sprint and all other proposals set forth in the proxy statement, and not tender any shares of Class A common stock pursuant to the DISH Network (DISH) tender offer.
2:30 pm CBOT Agriculture and Ethanol/ICE Sugar Closing Prices (:COMDX) :
- July corn fell 7 cents to $6.73/bushel
- Dec corn fell 9 cents to $5.61/bushel
- July wheat fell 5 cents to $7.00/bushel
- Nov soybeans fell 25 cents to $12.86/bushel
- Aug ethanol fell 3 cents to $2.38/gallon
- Sep sugar (#16 (U.S.)) fell 0.64 of a penny to 18.95 cents/lbs
2:26 pm Pharmacyclics: Ibrutinib monotherapy clinical trial data in patients with Waldenstrom's Macroglobulinemia presented at the International Conference on Malignant Lymphoma (PCYC) : Co announced results of a study evaluating ibrutinib, an investigational oral Bruton's tyrosine kinase (:BTK) inhibitor in patients with Waldenstrom's Macroglobulinemia (WM). Pharmacyclics is jointly developing ibrutinib with Janssen Research & Development, LLC. The data were presented today at the International Conference on Malignant Lymphoma (:ICML), taking place in Lugano, Switzerland. Thirty five relapsed/refractory WM patients who received a median of 2 prior therapies were evaluated. Key findings presented at ICML include:
- The best overall response rate was 83% (11.4% very good partial response; 54.3% partial response; 17.1% minor response)
- After six treatment cycles (a cycle = 4 weeks of treatment) bone marrow disease burden decreased from 70% down to 40% (p=0.0004)
- Levels of IgM reduced from 3,190 mg/dL at baseline to 1,232 mg/dL (6 cycles best response; p=5.1x10-9)
- Red blood cell production improved with levels of hematocrit increasing from 30.8% to 39.7% (6 cycles best response; p=1.1x10-11)
- The safety profile observed in patients with WM was similar to the established safety profile in other B-cell malignancies. Grade 3 and higher adverse events associated with the treatment of ibrutinib were infrequent with thrombocytopenia and neutropenia seen in 8.6%, and single cases of stomatitis and atrial fibrillation. None of these events led to ibrutinib discontinuation.
- As of June 3, 2013, 91.4% of patients remain on the study with a minimum of 6 cycles of follow up. The study was extended by an additional 28 patients to further evaluate the safety and efficacy of ibrutinib in WM and a total of 63 patients are now enrolled.
2:10 pm Bristol-Myers: FDA approves U.S. product labeling update for Sprycel (dasatinib) to include three-year first-line and five-year second-line efficacy and safety data in chronic myeloid leukemia in chronic phase (BMY) : Co and Otsuka America Pharmaceutical announced that the FDA has approved an update to the Sprycel (dasatinib) product labeling. The labeling now includes three-year efficacy and safety data in patients with newly diagnosed Philadelphia chromosome-positive (Ph+) chronic myeloid leukemia (:CML) in chronic phase (CP) and five-year data in CP Ph+ CML patients who are resistant or intolerant to Gleevec1 (imatinib mesylate). The effectiveness of Sprycel is based on cytogenetic response and major molecular response rates. The trial is ongoing and further data will be required to determine long-term outcome.
Information added to the Sprycel label in the first-line CP Ph+ CML setting is based on three-year data from DASISION (Dasatinib versus Imatinib Study in Treatment-Naive CML Patients), an open-label, randomized, Phase 3 international trial. In the study, Sprycel demonstrated superior efficacy as defined by higher molecular (major molecular response2 or MMR) and confirmed cytogenetic response rates (CCyR3) by 12 months, compared to imatinib. The most frequently reported serious adverse reactions in patients with newly diagnosed CP Ph+ CML included pleural effusion (4%), hemorrhage (2%), congestive heart failure (1%), pulmonary hypertension (1%), and pyrexia (1%).
1:56 pm COMEX Metals Closing Prices (:COMDX) :
- Aug gold fell $87.90 to $1285.90/ounce
- Gold extended overnight losses as it tumbled below $1300 to its lowest levels since September 2010. Investors reacted to statements from Federal Reserve Chairman Ben Bernanke that signaled a potential reduction to the Fed's asset purchase program in 2014 if the economy continues to improve. Strength in the dollar index also added to selling pressure. The yellow metal booked a 6.4% loss as it settled at its session low.
- July silver fell $1.79 to $19.82/ounce
- Silver fell for a fourth consecutive session alongside gold. Prices plummeted below $20 to levels not seen since September 2010. The metal settled slightly above its session low of $19.70, booking a loss of 8.3%.
- July copper fell 8 cents to $3.06/lb
1:22 pm Stock indices back vacillating near session lows -- Dow -245, S&P -28, Nasdaq Comp -60 (SPY) : Noted in the 12:12 chart that the S&P had stabilized near the June low / April breakout point but needed to initially clear intraday resistance at 1608. The late morning rebound hit 1608 with it back near the session low at 1599.
1:09 pm BMC Software announces expiration of consent solicitation and receipt of requisite consents (BMC) : Co announced that it has received the requisite consents with respect to its previously announced solicitation of Consents with respect to certain proposed amendments to the Supplemental Indenture, dated as of June 4, 2008, between the Company and Wells Fargo Bank, N.A., as trustee to the Base Indenture, dated as of June 4, 2008, by and between the Company and Wells Fargo Bank, N.A., as trustee governing its 7.25% Notes due 2018 upon the terms and subject to the conditions set forth in the Consent Solicitation Statement and the accompanying Form of Consent, each dated as of June 7, 2013. The Solicitation expired at 5:00 p.m., New York City time, on June 19, 2013. As of the Expiration Time, the Company received the requisite number of Consents required to approve the Proposed Amendments. These Consents may not be revoked.
12:34 pm U.S. Energy reports initial production rate of 859 gross BOE/D and 30 day average gross production rate of 979 BOE/D from the Beeler #2H well in south Texas (USEG) : Co announced the successful completion of the Beeler #2H well at a gross initial production rate of 859 BOE/D. The well had a 30 day average gross daily production rate of 797 BOE/D. The Beeler #2H is the Company's first participated well in Dimmit County, Texas targeting the Buda formation. The Beeler #2H well was drilled to a total measured depth of 11,013 feet, including a 3,700 foot lateral. The well was completed open hole, without fracture stimulation. The well had an early 24 hour initial production rate of 859 BOE/D, which consisted of 761 barrels of oil, 56 barrels of natural gas liquids and 253 thousand cubic feet of natural gas, on a 25/64th choke. The Company participates in approximately 10,140 gross acres which are prospective for the Buda formation and has an approximate 30% working interest and an approximate 22.8% net revenue interest in the acreage.
12:17 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
- NOK (3.97 +3.25%): WSJ.com reported co and MSFT previously discussed device unit deal.
- MFC (16.27 +1.18%): Upgraded to Outperform at BMO Capital Mkts.
- ALL (47.41 +0.77%): Announced estimated catastrophe losses for the month of May 2013 of $323 mln, pre-tax ($210 mln after-tax).
- BLK (253.97 -5.4%): Tgt raised to $286 at Stifel.
- KR (33.29 -5.24%): Beat on EPS by $0.04, reported revs in-line; raised FY14 EPS in-line with consensus.
- CIG (8.69 -4.61%): Upgraded to Buy from Hold at Standpoint Research.
- GME (40.51 +5.14%): Microsoft (MSFT) will allow Xbox users to play games without an internet connection - reversed used games policy for Xbox One; reiterated as Buy at Stern Agee.
- GCI (24.56 +1.57%): Tgt raised to $29 at The Benchmark Company; tgt raised to $30 at Argus; long-term rating to BUY from HOLD following BLC deal.
- RHT (46.95 +1.58%): Beat on EPS by $0.01, reported revs in-line; sees Q2 EPS of $0.32-0.33 vs $0.33 Capital IQ consensus Estimate, revs of $370-373 mln vs $373.16 mln Capital IQ Consensus Estimate; reaffirmed guidance for FY14 EPS and revs; heard positive comments at Pacific Crest.
- KGC (5.05 -8.35%): Weakness in metals/mining names following gold and silver decline (AEM, AUY, SLW).
- PHM (19.07 -8.14%): Weakness in homebuilders (DHI, LEN).
- RAD (2.9 -6.82%): Reported EPS in-line, revs in-line; lowered GAAP EPS to reflect refinancing transactions, reaffirmed FY14 revs, comps EBITDA guidance.
12:12 pm S&P -22 edges up slightly off June low and April high/breakout point (SPY) : As noted several times this month in The Technical Take the S&P has probed its 50 day sma/ema and the multi-month trendline. Today's breakdown has penetrated these levels to test the June low and April high/bull breakout point at 1598/1597 (click for chart).
12:06 pm On Track Innovations announces favorable results of Markman hearing in patent infringement suit against T-Mobile (TMUS) (stock halted) (OTIV) : Co announced that it received today the favorable decision on claim construction in the patent infringement lawsuit alleging that Near Field Communication (:NFC) enabled phones sold by T-Mobile USA, Inc. infringe OTI's U.S. Patent No. 6,045,043 (the "'043 patent"). The Honorable Judge Alison J. Nathan's "adopt[ed] [OTI's] proposed constructions of all four disputed terms." The lawsuit is pending in the United States District Court for the Southern District of New York and was filed in March, 2012. Today's decision followed two days of proceedings last month, including a technology tutorial followed by a claim construction argument before the Court. The Court considered the meaning of certain technical terminology used in the '043 patent.
"Today's decision validates OTI's intellectual property and strongly supports our view that the '043 patent is fundamental to every NFC-enabled phone," said OTI's CEO, Ofer Tziperman. The '043 patent is part of OTI's extensive intellectual property portfolio, including over two dozen issued patents and pending patent applications in the US and numerous more around the world encompassing product applications, software platforms, system and product architecture, product concepts and more in the fields of NFC, contactless payments, secure ID, petroleum and parking solutions.
12:02 pm Abbott Labs introduces first FDA-approved hepatitis C gentyping test for patients in the U.S. (ABT) : Co announced that it has introduced the first FDA-approved hepatitis C virus (:HCV) genotyping test for patients in the United States. Abbott's fully automated RealTime HCV Genotype II test determines the specific type or strain (referred to as the genotype) of the HCV virus present in the blood of an HCV-infected individual. Genotyping the HCV virus provides physicians with important information they can use to create a personalized, targeted diagnosis and treatment path to improve clinical outcomes.
12:00 pm European Markets Closing Prices (:SUMRX) : European markets are now closed; stock markets across Europe performed as follows:
- UK's FTSE: -3.0%
- Germany's DAX: -3.3%
- France's CAC: -3.7%
- Spain's IBEX: -3.4%
- Portugal's PSI: -3.4%
- Italy's MIB Index: -3.1%
- Irish Ovrl Index: -1.3%
- Greece Athex: -3.7%
11:46 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (162) outpacing new highs (32) (:SCANX) : Stocks that traded to 52 week highs: ARL, ASYS, AVG, BHE, CBF, CLWR, CME, DWSN, ENT, FAC, FCSC, GME, IMKTA, IMPV, INBK, IPCM, LARK, LEE, LGND, MFC, MPAA, PBCP, RYAAY, SBGI, SFG, SMRT, TECUA, TGTX, TWMC, WAGE, WMGI, YRCW
Stocks that traded to 52 week lows: AAU, ABIO, ABV, ABX, ACC, ACH, ACI, ACRE, AEM, AGNC, AGRO, AKG, AMTG, ANV, ARE, ARPI, ASM, ASTM, AT, AU, AUQ, AUY, AVL, AXU, AXX, BAA, BBD, BBL, BCA, BHP, BLT, BONA, BOTA, BOXC, BPZ, BRD, BSAC, BSBR, BTU, BVN, CDE, CDY, CDZI, CEF, CEO, CHL, CIG, CLI, CNCO, CPE, CPL, CRNT, CRVP, CSG, CYTX, DIGA, DLR, EBIX, EBR, EC, EDR, EFUT, EGO, EMXX, ENI, EOC, ETAK, EXK, FE, FNV, FRT, FST, GFI, GG, GGB, GNVC, GOL, GOLD, GROW, GSM, GSS, GTU, GVP, GWAY, HBM, HMY, HXM, IFN, IVAN, JMI, KGC, LFC, LFL, LPR, LSG, MCF, MEET, MELA, MITSY, MITT, MTGE, MVG, NAT, NBG, NEM, NGD, NLY, OGXI, OIBR, OKS, OSH, OSUR, OXGN, PAAS, PAL, PBR, PBR.A, PEIX, PESI, PKX, PPS, PTIE, PTR, PZE, QMM, RBY, RGLD, RIO, RIOM, RVM, SARA, SBS, SBY, SCCO, SLT, SLW, SMS, SQM, STO, SVLC, SVM, TAC, TBOW, TCK, TEU, TGA, THM, TI, TI.A, TNGN, TRX, TSEM, TWI, TXCC, USM, VALE, WACLY, WF, WHX, WIN, YZC, ZNH
ETFs that traded to 52 week highs: TBT
ETFs that traded to 52 week lows: AGG, BKF, BND, BWX, CHN, DBA, DBB, DJP, ECH, EEB, EMB, EWZ, EZA, FXA, GAF, GDX, GDXJ, GLD, HYD, IAU, IEF, IEI, ILF, JJC, JO, KOL, LQD, MBB, MUB, PIN, PPLT, REMX, SHY, SIL, SIVR, SLV, SLX, TIP, TLH, TLT, VWO, XME
11:46 am Currency Commentary: Dollar Rallies As Fed Provides Potential Exit Dates (:SUMRX) :
- The Dollar Index has rallied to the 82 level. The greenback has been bid since yesterday afternoon on the heels of the FOMC statement, projects and Ben Bernanke commentary. Market participants are viewing the event as being more hawkish than expected. Mr. Bernanke provided an exit strategy and even went as far as to provide a time period, saying tapering could begin at the end of 2013 and conclude by mid-2014. Now, the direction remains data dependent. But with that in mind we saw a strong set of economic data this morning as Existing Home Sales and the Philadelphia Fed outpaced expectations. These reports were offset to a certain degree by the miss in Initial Claims and Leading Indicators. But overall the environment remains hawkish with the dollar bid and yields rising in anticipation of the end of the current QE.
- The euro has been chopped lower in reaction as the single currency tumbles from the 1.34 level back down to 1.3170. The single currency is showing some signs of halting the decline at that 1.3170 level. Preliminary PMI data from the region was mixed to slightly better but the overall numbers remain below the 50 level indicating a contracting economy although at a slower rate. Eurozone finance ministers are int eh midst of meeting ahead of next week's EU Leaders Summit but there are few items of note expected. The group is likely laying the final touches on a banking union that will be announced at next week's meeting.
- The pound has dropped in step with the euro as it fell to 1.5450 from the 1.56 level. Sterling is stabilizing after the quick post-Fed declines.
- The yen has reversed course this morning in the face of the strengthening dollar. The yen fell to the 98 level after consolidating at 94-95 ahead of the Fed meeting. Japanese investors will now turn their attention to the upcoming Upper House elections set for July 21. Expectations are that Sinzo Abe's party will be able to take the house and push through the 'third arrow' of Abenmoics. But headline risk will remain which will keep market participants cautious. This should lead the yen into a consolidative phase in the 94-100 area in coming weeks.
- The Swiss franc is in focus after the Swiss National Bank held an interest rate meeting. The central bank said it would keep in place the 1.20 ceiling against the euro. A level that it has not had to defend since December of last year. But with growing global economic concerns the currency is likely to see some safe haven bidding which will put the central bank policies back to the test. The franc has rallied to the 1.2270 level against the euro today (FOREX, BONDX).
11:34 am Fieldpoint Petroleum announced that its Board of Directors has appointed Philip Roberson to serve as COO/CFO (FPP) :
11:21 am Finisar (+12%) displaying notable outperformance this session; the stock broke out to a 4 month high after co beat Q4 ests and guided Q1 above consensus (FY14 rev in-line) after the bell last night (FNSR) :
11:17 am KBW Regional Bank ETF continues to display relative strength (KRE) : Noted relative strength in the sector vs. the S&P this morning with it currently hovering in the range near its rebound high of 32.59. Outperforming stocks include: CVBF +0.9%, zion +0.7%, UMPQ +0.4%, BOH +0.4%, SIVB +0.3%, SBNY +0.3%.
11:16 am John Wiley & Sons raises quarterly dividend by 4% to $0.25 per share from $0.24 per share; Board approves 4 mln share repurchase program (JW.A) :
11:10 am Nasdaq Comp -65 and Nasdaq 100 -47 along with S&P -28 slide to new lows -- Dow -246 just slightly above (SPY) :
11:05 am Technology Select Sector SPDR tests 50 sma/June low (XLK) : The XLK is down 1.3% but is the best performing S&P sector. The morning gap down and extension leaves it back near its 50 sma and June low at 31.15/31.11 (session low 31.13).
11:05 am Eli Lilly and Boehringer Ingelheim Pharmaceuticals announce updates to prescribing information for TRADJENTA (linagliptin) Tablets and JENTADUETO (linagliptin and metformin hydrochloride) Tablets (LLY) : Boehringer Ingelheim Pharmaceuticals, Inc. and Eli Lilly and Company (LLY) announce the FDA has approved updates to the full U.S. Prescribing Information (:PI) for TRADJENTA (linagliptin) tablets and JENTADUETO (linagliptin and metformin hydrochloride) tablets. These updates are part of ongoing efforts to update product labels to ensure physicians, pharmacists and patients have the information they need to use the medications appropriately. Information about pancreatitis was included in the adverse reactions sections of the original labels for these products; it is now displayed in additional sections of the PIs.
10:49 am Crimson Exploration announces its first Buda formation oil discovery at a 24-hr rate of 859 Boepd and a 30-day rate of 797 Boepd (CXPO) : Co announced today the successful completion of the Beeler #2H (50.0% WI) at a gross 24-hr initial production rate of 859 Boepd, or 761 barrels of oil, 56 barrels of natural gas liquids and 253 thousand cubic feet of natural gas, on a 25/64th choke. The well averaged a gross 30-day production rate of 797 Boepd. The Beeler #2H is Crimson's first well in Dimmit County, Texas targeting the Buda formation. The Beeler #2H was drilled to a total measured depth of 11,013 feet, including a 3,700 foot lateral, and completed open hole, without fracture stimulation. The well is located in Crimson's Booth-Tortuga Area where the Company currently has approximately 10,140 gross acres prospective for the Buda formation.
10:47 am S&P -25 extends back near psych level/June low at 1600/1598 and stabilizes -- session low 1601 (SPY) : Some minor relative sector strength (outperforming the S&P) noted in Bank KBE, Reg Bank KRE, Technology XLK, Defense PPA in recent trade.
10:43 am Floor Talk (:TALKX) : It has been a rough start for the stock market today based on a number of factors:
- Rising interest rates
- Disappointing PMI data out of China
- Sharp losses in foreign stock markets
- Lack of leadership
- Violation of technical support at 50-day simple moving average for the S&P 500 (1618)
In turn, there hasn't been any pickup in buying interest among the cyclical sectors, which continue to troll near their lows for the day, suggesting China's weak data is maintaining some influence over the space. The energy sector (-2.2%) is the biggest laggard of the group followed by the industrials (-1.8%) and materials (-1.8%) sectors. That's not to say the countercyclical sectors are faring much better. In fact, they are not. The consumer staples, health care, utilities, and telecom services sectors are all down between 1.5% and 1.8%.
There just isn't much buying interest at all at the moment. That could change if we see a key reversal in interest rates, but at the moment, buyers are keeping to the sidelines amid a cloud of confusion about the volatility and mixed messages presented by the global stock, bond, and currency markets.
10:33 am Fresh lows for major averages -- Dow -234, S&P -26, Nasdaq Comp -48 (SPY) :
10:32 am July natural gas futures drop following inventory data; July crude oil is now -2.4% at $3.87/MMBtu (:COMDX) :
10:22 am Cantel Medical Board of Directors announces 3-for-2 stock split and authorizes semiannual dividend (CMN) : Co announced that its Board has declared a 3-for-2 stock split to be effected as a stock dividend of three shares for each two shares issued and outstanding, payable Friday, July 12, 2013 to the holders of record of Cantel's common stock as of the close of business on Monday, July 1, 2013. The Company will make cash payments based upon the closing price of Cantel's shares on the record date in lieu of the issuance of fractional shares.
In addition, the Board of Directors authorized a regular semiannual cash dividend payable on each outstanding share of the Company's Common Stock. Giving effect to the 3-for-2 stock split, the dividend will be $0.037 per share and will be payable on Wednesday, July 31, 2013 to shareholders of record at the close of business on Wednesday, July 17, 2013.
10:15 am S&P -20 joined Dow -188 at minor new session low, Nasdaq Comp -37 has not yet confirmed (:TECHX) :
10:11 am St. Joe Company signs letter of intent with Enova Energy for development opportunities in Florida's Northwest region (JOE) : Co announced that it has signed a Letter of Intent with Enova Energy Group, a full service, clean energy development company specializing in development and operations of contracted renewable based assets. The LOI contemplates economic development opportunities for Florida's Northwest region, including the potential to bolster usage of the AN Railway and make the Port of Port St. Joe operational.
10:06 am Dow -180 sets new session low but S&P -18, Nasdaq Comp -34 and A/D Line have not yet confirmed the move (:TECHX) :
10:02 am Stock indices choppy near minor bounce highs after limited reaction to data -- Dow -145, S&P -15, Nasdaq Comp -31 (SPY) :
10:02 am Gen Growth Prop confirms it filed form S-3 to update ownership by Brookfield Entities; Brookfield has no intention of selling its securities of GGP (GGP) : Co filed S-3 to update a registration statement previously filed in March 2011 related to the ownership of GGP securities held by affiliates of Brookfield Asset Management (BAM). The Form S-3 was administrative in nature and in the normal course of business. Brookfield has advised the Company that it has no intention of selling its securities of GGP.
10:01 am Verisk Analytics announces additional $300 mln share repurchase authorization (VRSK) :
10:01 am Pacer Intl expands network in China (PACR) : Co announced that effective July 1, 2013, Pacer International/Ocean World Lines (:OWL) has entered into a new agreement with CTS International Logistics Corporation, Ltd. that will further expand its network. CTS brings 56 offices in mainland China to the Pacer/OWL network, providing a location in every major business and manufacturing center, port and airport. Pacer believes that CTS International is perfectly situated for unmatched supplier relationship management and origin and destination logistics activities.
10:00 am Apple bounces back to positive territory, sets new session high (AAPL) :
9:54 am Stock indices edge up mildly off early lows -- Dow -143, S&P -14, Nasdaq Comp -31 (SPY) : The S&P did stabilize at support noted in The Technical Take (09:40) at 1608/1607 in the wake of the aggressive follow through declines. Thus far it has merely reach the 38% retrace of today's range at 1614. If it can hold above the 1612/1610 zone on a pause there is potential for another bounce attempt. Next intraday resistances are at 1616/1618 (50 day sma/ema) and the opening level (1624).
9:40 am Not let-up yet in early pressure with S&P -18 reaching June close low -- Dow -157, Nasdaq Comp -40 (SPY) : The S&P has rapidly extended the sharply lower start bringing the June close low, last week's low and congestion into play at 1608/1607 (The Technical Take session low 1608).
9:32 am Quick S&P test of its 50 sma/ema at 1618/1616 -- session low 1616 (SPY) :
9:31 am Meadowbrook Ins: Honigman's David K. Page named chairman of the board of Meadowbrook Insurance Group (MIG) : David K. Page, a partner in the Corporate Department at Honigman Miller Schwartz and Cohn, has been named non-executive chairman of the board of Meadowbrook Insurance Group, a position formerly held by the co's founder Merton J. Segal.
9:29 am Morgans Hotel Group: Kerrisdale Capital Management issues letter earlier to Morgans Hotel Group, urges board to sell company (MHGC) : Kerrisdale Capital Management, a private investment management firm and beneficial owner of 1.4 mln shares of Morgans Hotel Group and 4.3% of the company, issued the following letter (summary):
"...We believe that Morgans management has taken diligent steps to make the company appealing to a strategic acquirer. Unsurprisingly, these steps have required investments, not only in the form of capital investments but also in the form of investments through the expense line items of the income statement. ...Morgans Hotel needs to be sold. A thorough and carefully coordinated sale process, spearheaded by a reputable investment banking firm, is the very obvious way forward for the company at this time...Morgans Hotel Group is far more valuable to a strategic acquirer than operating as a standalone company. To a capable acquirer, Morgans represents a scalable platform upon which to build a high-margin international luxury boutique hotel chain. As we saw Starwood do brilliantly with its Le Parker Meridien acquisition, a strategic acquirer can make many multiples off its investment by combining a prestigious hotel brand with its international expansion expertise...Our advice to the incoming board is clear: keep the current management and move forward with the ongoing sale process. The OTK board must explore the nine expressions of interest in a full and transparent process, and aggressively solicit additional bids..."
9:27 am On The Wires (:WIRES) :
- Prologis (PLD) has signed a new build-to-suit agreement with a Polish retailer for a 376,000 square foot distribution center in Poland.
- Dealertrack (TRAK) Canada has completed Dealer System certification with GM of Canada.
- California's Santa Barbara Unified School District has signed an agreement with Tyler Technologies (TYL) for Tyler's Munis enterprise resource planning solution to integrate financial and personnel reporting across the district's departments.
- Oxford Industries (OXM) announced that shareholders have elected a new member, Thomas C. Gallagher, to the co's Board of Directors.
- Xplore Technologies (XPLR) announced a new LTE-enabled iX104C5 Dual Mode Sunlight Readable ultra-rugged tablet.
- Unisys (UIS) UK has joined the SAP PartnerEdge program as an SAP services partner.
- Burger King Worldwide (BKW) expanded its delivery service to Boston.
- The New York Times (NYT) announced plans to meter its mobile applications, granting mobile app users access to up to three articles a day across any section in the apps.
- Atlas Air Worldwide Holdings (AAWW) announced that its Atlas Air unit has signed an agreement to operate a VIP-configured Boeing (BA) 767-200 passenger aircraft in CMI service for MLW Air.
- Coffee Holding (JVA) announced the launching of their Premier Roasters 100 % Arabica Whole Bean Coffee line packed in composite cans.
- Boeing (BA) launched its newest model, the 787-10 Dreamliner, announced important commercial airplane orders and strengthening alliances and relationships with customers and partners around the world at the 2013 Paris Air Show.
9:26 am On The Wires (:WIRES) :
- Neogen (NEOG) announced the development of a new genomic test that offers the dairy cattle industry information on the genetic potential of replacement dairy heifers.
- Nuance Communications (NUAN) announced that its NDEV Mobile developer program now offers beta access to voice capabilities specifically designed to support Smart TV use cases.
- Harford Mutual Insurance Companies and Guidewire Software (GWRE) announced that Harford Mutual has selected Guidewire InsuranceSuite as its new platform for rating, underwriting and policy administration, claims management, and billing.
- LPL Financial, a subsidiary of LPL Financial Holdings (LPLA), announced David P. Bergers as the firm's new Managing Director for Legal and Government Relations and General Counsel for LPL Financial Holdings.
- DISH (DISH) updated its Hopper sports app, Game Finder, to give soccer fans the ability to keep up with stats and scores of nine premier soccer leagues, as well as the 2014 FIFA World Cup qualifying rounds.
- Thailand's KASIKORNBANK Public Company Limited is delivering personalized consumer experiences at the ATM with a new solution from Diebold (DBD).
- Amazon (AMZN) has secured licenses for its new publishing platform, Kindle Worlds, with comic book publisher Valiant Entertainment and authors Hugh Howey, Barry Eisler, Blake Crouch and Neal Stephenson.
- ANADIGICS (ANAD) is shipping production volumes of its AWL9280 and AWL9580 WiFi front-end ICs to Samsung Electronics (SSNLF) for the new Galaxy Tab 3 family.
- Ignite Restaurant Group (IRG) announced the opening of its newest Joe's Crab Shack location in Riverhead, New York.
- CA Technologies (CA) announced same-day support for IBM (IBM) Enterprise COBOL for z/OS, V5.1.
9:18 am Progenics Pharm priced an underwritten public offering of ~8.5 mln primary shares of its common stock at a public offering price of $4.40/share (PGNX) :
9:18 am S&P futures vs fair value: -15.60. Nasdaq futures vs fair value: -28.00. (:WRAPX) : With 15 minutes to go before the start of today's session, equity futures remain near their lows. The S&P 500 futures are lower by 1.0% amid global weakness.
Yesterday's comments from Federal Reserve Chairman Ben Bernanke were interpreted as a hawkish warning of an impending modification to the Fed's asset purchase program. The Fed Chairman's statement was coupled with a caveat, saying the economy must continue showing improvement before modifications can be made, but it appears global markets have looked past this stipulation and chose to focus on the potential timeframe instead.
Contributing to the weakness was the ongoing Chinese liquidity crunch as the People's Bank of China elected not to intervene in the market. In addition, the HSBC Manufacturing PMI slipped further into contraction territory (48.3 actual, 49.4 expected, 49.2 prior).
The 10-yr note has climbed off its early lows, but its yield remains higher by four basis points at 2.400%.
9:17 am Crude oil futures fall below $96, hitting a new LoD of $95.70/barrel; July contract is now -2.6% at $95.70/barrel (:COMDX) :
9:11 am Seadrill Ltd enters into new contracts for the construction of two high specification jack-up drilling rigs at Dalian Shipbuilding Industry Offshore in China (SDRL) : Co announces that it has entered into new contracts for the construction of two high specification jack-up drilling rigs at Dalian Shipbuilding Industry Offshore Co in China. The newbuild rigs are scheduled for delivery during the fourth quarter of 2015 and the first quarter of 2016, and the total project price per rig is ~Co announces that it has entered into new contracts for the construction of two high specification jack-up drilling rigs at Dalian Shipbuilding Industry Offshore Co in China. The newbuild rigs are scheduled for delivery during the fourth quarter of 2015 and the first quarter of 2016, and the total project price per rig is ~$230 mln, with tail-heavy payment terms.
The two new units will be based on the F&G JU2000E design, with water depth capacity of 400ft and drilling depth of 30,000ft. Seadrill now has in total eight jack-ups under construction at DSIC Offshore of which two are scheduled for delivery in 2013, five in 2015 and one in 2016. 30 mln, with tail-heavy payment terms.
The two new units will be based on the F&G JU2000E design, with water depth capacity of 400ft and drilling depth of 30,000ft. Seadrill now has in total eight jack-ups under construction at DSIC Offshore of which two are scheduled for delivery in 2013, five in 2015 and one in 2016.
9:09 am Celgene: Two studies evaluating the combination of REVLIMID and Rituximab in Non-Hodgkin's Lymphomas Presented at International Conference on Malignant Lymphoma (CELG) : In this preliminary report from a phase II study, conducted by the Alliance for Clinical Trials in Oncology, and presented by Peter Martin, M.D., Assistant Professor of Medicine at Weill Cornell Medical College, patients with untreated follicular lymphoma, including those with grade 1-3a, stage 3-4 or bulky stage 2 and FLIPI 0-2 disease, were given lenalidomide for 12 cycles and rituximab (four weekly doses of 375 mg/m2 during cycle 1 and on day 1 of cycles 4,6,8 and 10). Sixty-six patients were initially enrolled.
The primary outcomes were response rate and progression-free survival (PFS). Of 54 patients evaluable for response, the overall response rate was 92.6% (50/54), including 72.2% (39/54) of patients who achieved a complete response, 20.4% (11/54) who achieved a partial response, 3.7% (2/54) who achieved stable disease and 3.7% who (2/54) did not respond. In the study, the most common grade 3-4 adverse events that occurred in at least 5% of patients included neutropenia (20%), lymphopenia (8%), rash (8%), fatigue (6%), and leukopenia (5%).
Another phase II study, presented by Grzegorz Nowakowski, M.D., Assistant Professor of Medicine at the Mayo Clinic, evaluated the combination of lenalidomide plus rituximab, cyclophosphamide, hydroxydaunorubicin, oncovin and prednisone (R2CHOP) in patients with newly diagnosed diffuse large b-cell lymphoma (:DLBCL) or grade 3b follicular lymphoma. this study, 63 patients with DLBCL and four patients with grade 3b follicular lymphoma received six cycles of R2CHOP and were assessed for response using PET/CT at the end of the course of therapy. Primary outcomes were response rate and PFS. In the 63 patients evaluable for response, the overall response rate was 98%, with 74% of patients achieving a complete response. At 18 months, the PFS rate for these patients was 66% (95% CI: 55-80%).
The most common grade 3 and 4 hematological adverse events in the study were thrombocytopenia (21% and 18%, respectively) and neutropenia (15% and 73). The most frequent non-hematologic toxicities were febrile neutropenia (8%) and fatigue (5%). There was one death (2%) due to bowel perforation.
9:08 am Rowan Cos Provides Fleet Contract Status Update; Rowan Resolute entered into a three-year contract with Anadarko Petroleum (APC) at an effective day rate in the high $600s (RDC) : Co announced it entered into a three-year contract with Anadarko Petroleum Corporation at an effective day rate in the high $600s. The drillship is expected to be delivered at the end of the second quarter 2014 and operate in the U.S. Gulf of Mexico starting in the late third quarter 2014. The Rowan Resolute is one of four ultra-deepwater drillships being constructed for Rowan by Hyundai Heavy Industries shipyard in Ulsan, South Korea.
9:07 am Empresas ICA announced the signing of a definitive agreement to sell its 18.7% stake in Red de Carreteras de Occidente (ICA) : Co announced the signing of a definitive agreement to sell its 18.7% stake in Red de Carreteras de Occidente, S.A.B. de C.V. (:RCO), the concessionaire for approximately 760 km of highways in Mexico to funds managed by Goldman Sachs.
ICA expects to receive Ps. 5,073 million for its investment and to continue operating the highways. The transaction completes an asset recycling process initiated in 2012.
9:05 am Prana Biotech: PBT434 Drug Candidate Shows Potential as 'Next-Generation' Disease-Modifying Treatment in Parkinson's Disease (PRAN) : Co announces the release of data which indicates its drug candidate PBT434 shows significant disease-modifying capability in multiple animal models of Parkinson's Disease with potential utility in a range of movement disorders.
PBT434 prevents alpha synuclein from aggregating and also prevents the toxic consequences of iron combining with dopamine. In a further sign of the potential of PBT434 as an effective treatment, its therapeutic benefits were seen to be dose-dependent. Increasing increments of the drug resulted in increased preservation of neurons and increased improvement in motor function.
The drug is progressing through the development process, with the aim of first clinical trials in 2015.
9:04 am Green Mtn Coffee appoints three new directors; co founder Robert Stiller becomes Chairman Emeritus (GMCR) : Co announced the appointment of three new Directors to its Board: John D. Hayes, Executive Vice President and Chief Marketing Officer of American Express; Susan Saltzbart Kilsby, Senior Advisor to Credit Suisse AG; and Robert A. Steele, former Vice Chairman, Healthcare Strategy for The Proctor & Gamble Company. The appointments coincide with the retirement of two Board members, former President and CEO, Lawrence Blanford, and GMCR founder, Robert Stiller, who becomes Chairman Emeritus following his retirement from the Board.
9:03 am Allstate announces estimated catastrophe losses for the month of May 2013 of $323 mln, pre-tax ($210 mln after-tax) (ALL) : Co announced estimated catastrophe losses for the month of May 2013 of $323 million, pre-tax ($210 million after-tax). Catastrophe losses occurring in May comprised seven events at an estimated cost of $312 million, pre-tax, plus unfavorable reserve reestimates of prior reported catastrophe losses. Three severe weather events accounted for over 90% of the estimated loss for May events. Allstate previously announced $216 million, pre-tax ($140 million after-tax), in estimated catastrophe losses for the month of April 2013, bringing estimated catastrophe losses for the second quarter months of April and May 2013 to $539 million, pre-tax ($350 million after-tax).
9:02 am Lincoln Educational Services Announces Closing of Five Campuses (LINC) : Co announces that it plans to close four campuses in the State of Ohio and one campus in the Commonwealth of Kentucky. These five schools are expected to cease all operations on or before December 31, 2013.
Commentary: "Federal legislation implemented on July 1, 2012 that prohibits Ability-to-Benefit students from participating in federal student financial aid programs has led to a dramatic decrease in the number of students attending these five campuses...We assessed the productivity and potential for each of these campuses during this challenging economic period and made the difficult decision that they were no longer sustainable....Closing campuses is never easy. However, we have an obligation to make tough decisions when necessary to strengthen our company. We will continue to make investments and focus resources in a manner that will generate the greatest value to our students and our shareholders."
9:01 am Samsung Elect: Qihoo 360 (QIHU) Discovered Smishing Vulnerability in Samsung Galaxy S4 (SSNLF) : Serious security vulnerability was recently discovered on the Samsung flagship Galaxy S4 device, which could be leveraged by malicious software to fake arbitrary SMS text messages, which will then be received by or sent from affected phones. This vulnerability was first discovered on June 17 by Qihoo 360.
The vulnerability has been promptly reported back to Samsung after the discovery and Samsung is already in the process of developing an official update to fix it.
This particular vulnerability is related to the "cloud backup" feature of Galaxy S4, which is not properly protected and can be abused. From the study, malicious software could potentially exploit it to send fraudulent scam text messages (to order premium-rated services) or fake incoming SMS messages (for phishing).
9:01 am Praxair to increase supply and extend pipeline system in the Port of Antwerp (PX) : Co announces it will build its second air separation plant and extend its pipeline system in the Port of Antwerp, the second largest petrochemical enclave in the world after Houston, Texas. The new 1,300 ton per day plant will increase Praxair's oxygen and nitrogen capacity in the port and expand its business with customers under long-term contracts, including agreements with several leading global companies. Start-up of the air separation plant is expected in early 2016.
8:59 am Kroger beats by $0.04, reports revs in-line; raises FY14 EPS in-line with consensus (KR) : Reports Q1 (Apr) GAAP earnings of $0.92 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.88; revenues rose 3.4% year/year to $30.04 bln vs the $30.19 bln consensus. Co raised guidance for FY14, sees EPS of $2.73-2.80 from prior guidance of $2.71-2.79 vs. $2.76 Capital IQ Consensus Estimate.
FIFO gross margin was 20.65% of sales for the first quarter. Excluding retail fuel operations, FIFO gross margin decreased 15 basis points from the same period last year.
Total sales, excluding fuel, increased 3.8% in the first quarter over the same period last year. The company's long term growth rate guidance is 8 -- 11%, plus a growing dividend.
FY14 Guidance Details: Kroger continues to expect identical supermarket sales growth, excluding fuel, of ~2.5% to 3.5% for fiscal year 2013. During fiscal 2013, Kroger plans to use cash flow from operations to maintain its current investment grade debt rating, repurchase shares, pay dividends to shareholders, and fund capital investments. The company continues to expect capital investments to be in the $2.1 to $2.4 bln range for the year.
8:58 am S&P futures vs fair value: -14.00. Nasdaq futures vs fair value: -23.50. (:WRAPX) : U.S. equity futures continue to hover near their lows with the S&P 500 futures down 0.9%.
Major Asian indices ended lower across the board with Hong Kong's Hang Seng (-2.9%) and China's Shanghai Composite (-2.8%) leading to the downside after the People's Bank of China remained on the sidelines, choosing not to intervene in a liquidity-starved banking system. As a result, the overnight repurchase rate spiked as high as 25%. In addition, a disappointing HSBC Manufacturing PMI reading (48.3 actual, 49.4 expected, 49.2 prior) contributed to the selloff. In other regional data, New Zealand's GDP rose 0.3% quarter-over-quarter (0.6% expected, 1.5% prior) while Japan continued to be a net seller of foreign bonds with a weekly outflow of JPY402.50 billion (-JPY394.40 billion prior).
- In Japan, the Nikkei closed lower by 1.7% despite the strengthening of dollar/yen. Isuzu Motors, Nikon, and Suzuki Motor ended with losses between 5.4% and 6.2%. On the upside, GS Yuasa and Sumitomo Electric gained 5.9% and 5.6%, respectively.
- Hong Kong's Hang Seng slid 2.9% as 49 of 50 components registered losses. China Construction Bank, China Resources Land, and CNOOC led to the downside with declines between 4.4% and 6.9%. The lone advancer, China Merchants Holdings International, ticked up 0.4%.
- In China, the Shanghai Composite lost 2.8% as growth-oriented names lagged. CCS Supply Chain Management and North Electro-Optic both fell near 8.6%. On the upside, Grinm Semiconductor Materials rose 10.0%.
Also of note, the Bank of England said five of eight banks had an aggregate capital shortfall of GBP27.1 billion at the end of 2012.
- Great Britain's FTSE trades lower by 2.2% as 99 of 101 members register losses. Miners are among the weakest index members as Fresnillo, Randgold Resources, and Rio Tinto sport losses between 3.8% and 5.7%. The only two advancers, Carnival and Lloyds Banking, trade with slim respective gains of 0.1% and 0.4%.
- In Germany, the DAX is lower by 2.5% with 29 of 30 components in the red. Exporters BMW and Volkswagen lead to the downside with losses near 4.0%. On the upside, Fresenius Medical is higher by 0.3%.
- France's CAC trades down 2.6% as Renault leads to the downside with a loss of 5.0%. Financials have also shown weakness as BNP Paribas sheds 3.2% while Societe Generale trades lower by 3.6%.
8:56 am European Markets Update: FTSE -2.2%, DAX -2.5%, CAC -2.6% (:SUMRX) : Major European indices hover near their lows following the release of a full slate of economic news. The Eurozone Manufacturing PMI ticked up to 48.7 from 48.3 (48.6 expected) while Services PMI rose to 48.6 from 47.2 (47.5 forecast). Germany's Manufacturing PMI fell to 48.7 from 49.4 (49.8 expected) while Services PMI rose to 51.3 from 49.7 (50.0 forecast). In addition, PPI declined 0.3% month-over-month (-0.1% expected, -0.2% prior). French Manufacturing PMI rose to 48.3 from 46.4 (47.0 expected) while Services PMI ticked up to 46.5 from 44.3 (44.8 forecast). Italian industrial orders rose 0.6% month-over-month (1.1% forecast, 1.8% previous). Great Britain's retail sales rose 2.1% month-over-month (0.8% expected, -1.1% prior) while core retail sales also increased 2.1% month-over-month (0.9% forecast, -1.2% prior). In addition, CBI Industrial Trends Orders ticked up to -18 from -20 (-15 expected).
Also of note, the Bank of England said five of eight banks had an aggregate capital shortfall of GBP27.1 billion at the end of 2012.
- Great Britain's FTSE trades lower by 2.2% as 99 of 101 members register losses. Miners are among the weakest index members as Fresnillo, Randgold Resources, and Rio Tinto sport losses between 3.8% and 5.7%. The only two advancers, Carnival and Lloyds Banking, trade with slim respective gains of 0.1% and 0.4%.
- In Germany, the DAX is lower by 2.5% with 29 of 30 components in the red. Exporters BMW and Volkswagen lead to the downside with losses near 4.0%. On the upside, Fresenius Medical is higher by 0.3%.
- France's CAC trades down 2.6% as Renault leads to the downside with a loss of 5.0%. Financials have also shown weakness as BNP Paribas sheds 3.2% while Societe Generale trades lower by 3.6%.
8:51 am Freddie Mac forgoes issuing a Reference Notes security on its June 20, 2013 announcement date (FMCC) : The co's 2013 Reference Notes calendar designates dates that it may use to announce the issuance of Reference Notes securities.
8:45 am On The Wires (:WIRES) :
- eHealth (EHTH) announced it is partnering with Aon Hewitt, a business of Aon plc (AON), to provide enrollment services to employees of Aon Hewitt's clients who choose to enroll in individual health insurance coverage.
- Capstone Turbine (CPST) announced the first order for Capstone MicroTurbines in Slovenia for two C200s to be installed at Splosna bolnisnica Novo Mesto, the general hospital in Novo Mesto, Slovenia.
- Dreyfus, a BNY Mellon (BK) co, has launched the Dreyfus Opportunistic Emerging Markets Debt Fund, an actively managed mutual fund.
- Entergy (ETR) announced the election of Admiral Kirkland H. Donald, U. S. Navy (retired) to its Board of Directors.
- EnerNOC (ENOC) announced the latest updates to its software platform, which include enhancements to overall system performance. This release internationalizes the platform for non-English speaking countries and implements single sign-on, both key features for enabling EnerNOC to expand its utility white-labeling capabilities worldwide.
- Monotype Imaging Holdings (TYPE) has released over 8,600 Web fonts on Linotype.com, now available for download and self hosting.
- Constellation NewEnergy, a business unit of Exelon (EXC), announced the launch of residential electricity supply in southwestern Ohio with a 12-month fixed price offer to nearly 600,000 consumers that delivers an estimated 14 percent savings over Duke Energy's (DUK) current price to compare.
- MaxLinear (MXL) announced its cooperation with STMicroelectronics (STM) on a DVB-T2 set-top box design for the emerging free-to-air and hybrid terrestrial STB markets in Europe and Southeast Asia.
- Lentuo International (LAS) announced that it has signed a letter of intent with the Hailin Economic and Technological Development Zone in Hailin City, Heilongjiang Province, China to jointly develop the Hailin-Lentuo Auto Mall.
8:43 am Asian Markets Close: Nikkei -1.7%, Hang Seng -2.9%, Shanghai -2.8% (:SUMRX) : Major Asian indices ended lower across the board with Hong Kong's Hang Seng (-2.9%) and China's Shanghai Composite (-2.8%) leading to the downside after the People's Bank of China remained on the sidelines, choosing not to intervene in a liquidity-starved banking system. As a result, the overnight repurchase rate spiked as high as 25%. In addition, a disappointing HSBC Manufacturing PMI reading (48.3 actual, 49.4 expected, 49.2 prior) contributed to the selloff. In other regional data, New Zealand's GDP rose 0.3% quarter-over-quarter (0.6% expected, 1.5% prior) while Japan continued to be a net seller of foreign bonds with a weekly outflow of JPY402.50 billion (-JPY394.40 billion prior). Looking at the currencies...USDCNY ticked up to 6.1282; USDINR rose to 59.576; USDJPY is stronger at 97.89; AUDUSD is lower near .9217. In Japan, the Nikkei closed -1.7% despite the strengthening of dollar/yen. Isuzu Motors, Nikon, and Suzuki Motor ended with losses between 5.4% and 6.2%. On the upside, GS Yuasa and Sumitomo Electric gained 5.9% and 5.6%, respectively.
In Hong Kong, the Hang Seng finished -2.9% as 49 of 50 components registered losses. China Construction Bank, China Resources Land, and CNOOC led to the downside with declines between 4.4% and 6.9%. The lone advancer, China Merchants Holdings International, ticked up 0.4%...In China, the Shanghai Composite settled -2.8% as growth-oriented names lagged. CCS Supply Chain Management and North Electro-Optic both fell near 8.6%. On the upside, Grinm Semiconductor Materials rose 10.0%.
In India, the Sensex closed -2.7%. Jindal Steel & Power fell 9.7% and Tata Steel tumbled 6.4%. Sun Pharmaceutical and Wipro were the only advancers, ending with respective gains of 0.8% and 1.2%.
In Australia, the ASX ended -2.1%. Billabong International dropped 9.7% and Endeavour Mining slumped 10.0%. On the upside, News Corp rose 15.1%.
In Taiwan, the Taiex settled -1.4% as AU Optronics slid 6.2%...In South Korea, the Kospi closed -2.0% as Keystone Global sank 12.5%.
In other regional markets...Vietnam -0.8%...Indonesia -3.7%...Thailand -2.5%...Malaysia -0.6%...Singapore -2.5%...Philippines -2.9%.
8:32 am National Financial Partners announces stockholders' approval of merger agreement; ~79.29% of NFP's total outstanding common stock voted in person or by proxy at yesterday's special meeting (NFP) : Co announced today that, at a special meeting of stockholders of NFP held on June 19, 2013, NFP's stockholders voted in favor of the proposal to adopt the previously announced Agreement and Plan of Merger, dated as of April 14, 2013, among Patriot Intermediate Holdings B, Patriot Merger, a direct wholly owned subsidiary of Parent, and NFP, pursuant to which Merger Sub will be merged with and into NFP, with NFP surviving the merger as a wholly-owned subsidiary of Parent.
Parent and Merger Sub are beneficially owned by affiliates of Madison Dearborn Partners ~79.29% of NFP's total outstanding common stock voted in person or by proxy at yesterday's special meeting. Of these shares voted in person or by proxy at the special meeting, approximately 97.93% were voted in favor of the proposal to adopt the Merger Agreement, thereby approving the Merger.
8:32 am Chambers Street Properties announces preliminary results of its Modified Dutch Auction tender offer; total of 76,107,253 common shares were properly tendered and not properly withdrawn at or below the final purchase price of $10.10 per share (CSG) : Co announces the preliminary results of its modified "Dutch Auction" tender offer for the purchase of up to $125 mln in value of its Common Shares of Beneficial Ownership, which expired at 5:00 p.m., New York City time, on June 19, 2013. Chambers Street announced that it processed the full amount of the tender offer as initially contemplated and meet the properly tendered requests submitted by tendering stockholders.
Based on the preliminary count by Computershare Trust, the paying agent and depositary for the tender offer, a total of 76,107,253 Common Shares were properly tendered and not properly withdrawn at or below the final purchase price of $10.10 per share, including 2,066,395 Common Shares that were tendered through notice of guaranteed delivery. Based on this preliminary count, the 76,107,253 Common Shares properly tendered and not properly withdrawn at or below the final purchase price of $10.10 per share represent ~30.57% of the Company's currently issued and outstanding Common Shares.
8:32 am S&P futures vs fair value: -11.70. Nasdaq futures vs fair value: -20.80. (:WRAPX) : The S&P 500 futures continue to trade lower by 0.8%.
The latest weekly initial jobless claims count totaled 354,000, which was higher than the 340,000 that had been expected by the Briefing.com consensus. Today's tally was above the revised prior week count of 336,000. As for continuing claims, they fell to 2.951 million from 2.991 million.
8:31 am Tutor Perini executes contract with the San Francisco Municipal Transportation Agency valued at ~ $840 mln; receives NTP for San Francisco Central Subway project (TPC) : Co announces that it has executed a contract with the San Francisco Municipal Transportation Agency (:SFMTA) valued at approximately $840 mln for the Third Street Light Rail Program Phase 2 -- Central Subway Stations, Surface, Track and Systems. The SFMTA has also issued its notice to proceed and the Company has begun its initial work on the project. Substantial completion is expected in 2Q18.
8:31 am Wells-Gardner Electronics subsidiary, American Gaming & Electronics, received aggregate signed purchase orders for VGT units to be installed in Illinois totaling ~ $40 mln (WGA) :
8:31 am Ligand raises ownership limit for BVF partners to 25% of shares outstanding (LGND) : Co announced that its Board of Directors has agreed to waive certain 'poison pill' provisions to allow BVF Partners L.P., including its affiliates and associates, to increase its ownership of the Company from the previous limit of 19.99% of outstanding common stock to a new limit of 24.99%, subject to certain conditions. BVF has been Ligand's largest shareholder since the second quarter of 2011 and currently owns 17.7% of the Company's outstanding stock. BVF's acquisition of stock, if any, is expected to be made in the open market or through direct purchases from other stockholders. Ligand has been diligent in setting the terms of the waiver for the potential benefit of all shareholders of Ligand. In summary, the conditions under which BVF will be permitted to exceed the current limit of 19.99% and own up to 24.99% of Ligand's outstanding stock include the following: BVF's purchases must exceed the 19.99% threshold within nine months from the date of the agreement, or the waiver for the increased ownership limit automatically terminates.
8:31 am Market View: Front-month Sep. E-minis remain pressured below fair values following the 8:30 a.m. ET weekly Jobless Claims data- ESu3 currently trades 1611.25 -12.50 (:TECHX) :
8:29 am Emcore enters into solar cell assembly supply contract with the Indian Space Research Organisation; The contract award is valued at $22 mln (EMKR) : Co announced that it has entered into a supply contract with the Indian Space Research Organisation (:ISRO) to manufacture, test, and deliver high-efficiency multi-junction solar cell assemblies for ISRO's commercial geostationary telecommunications and scientific earth observation satellite missions. Over the past four decades ISRO has launched more than 65 satellites for various commercial and scientific applications.
EMCORE has been a key supplier of solar cell products to ISRO for the past 15 years, including supplying solar equipment to power several INSAT telecommunications missions. Over the term of this new multi-year contract, EMCORE expects to deliver Coverglass Interconnected Cells incorporating its highest-efficiency ZTJ and ATJ solar cells for multiple satellite missions.
8:28 am On The Wires (:WIRES) :
- China Green Agriculture (CGA) announced that one of its subsidiaries organized under the laws of the PRC, Xi'an Hu County Yuxing Agriculture Technology Development, declared that it will commence a greenhouse drip irrigation project that has approved by the Hu County Water Supplier Bureau.
- ScanSource (SCSC) announced a new management structure to enhance its worldwide technology markets focus and growth strategy. Co has created two technology segments, each with its own President.
- Orthofix International (OFIX) announced the realignment of its businesses in order to better focus on operational performance and enhance the co's growth potential. The co's operational businesses will now include: BioStim, Spine Fixation, Biologics, International Extremity Fixation, and U.S. Extremity Fixation.
- The Open Data Center Alliance announced that Infosys (INFY) has joined ODCA as a contributing member.
- Allscripts (MDRX) announced that FollowMyHealth v2.0 has received 2014 Edition Modular EHR Certification - for both ambulatory and inpatient - from Drummond Group's ONC-ACB program, and is therefore considered compliant with the applicable criteria adopted by the Secretary of the U.S. Department of Health and Human Services.
- Kennedy Wilson (KW) announced the acquisition of Clancy Quay, a premier residential property in Dublin, Ireland. The co and its partner purchased the property for EUR82.5 mln on an all cash basis.
8:27 am On The Wires (:WIRES) :
- Ryder System (R) has begun to take delivery of 39 light and medium duty compressed natural gas vehicles, available for lease or rent. The vehicles include 20 Greenkraft cab-over vehicles with 6.0-liter GM natural gas engines and 19 Navistar International (NAV) TranStar trucks with Cummins Westport (CMI/WPRT) ISL G engines.
- RADA Electronic Industries (RADA) announced the reception of the first international purchase order for its Multi-Mission Hemispheric Radars. The customer is a US company, which will utilize the radars in a development program.
- SONIC Drive-In (SONC) signed an agreement with existing franchise partner, SPG Management, to develop five new drive-ins in San Diego County and 10 new drive-ins in the greater Los Angeles area over the next six years.
- MapR Technologies and VMware (VMW) announced that MapR's Distribution for Apache Hadoop is now certified for VMware vSphere.
- Broadcom (BRCM) announced the Wi-Fi Alliance has selected Broadcom 5G WiFi for its Wi-Fi CERTIFIED ac test suite.
- Cisco (CSCO) announced the evolution of its network services strategy for virtual and cloud networks by integrating the Citrix NetScaler application delivery controller technology into the Cisco Unified Fabric Cloud Network Services portfolio.
- NCR (NCR) announced that Hybrid Dining, a UK Burger King (BKW) Franchisee, has implemented the NCR Pulse Real-Time smartphone application, joining the 5500 other sites worldwide.
8:24 am Atossa Genetics signs distribution agreement with Fisher HealthCare (ATOS) : Co has signed an agreement with Fisher HealthCare, part of Thermo Fisher Scientific (TMO), for distribution of Atossa's ForeCYTE Breast Health devices, which consist of the patented MASCT pump and ForeCYTE patient collection kits.
8:19 am Gapping down (:SCANX) : In reaction to disappointing earnings/guidance: SCS -4.3%, JBL -4.1% (also announces reorganization plan), RAD -3.5%, MU -1.9%.
M&A news: EBIX -32.3% (Ebix and affiliate of Goldman Sachs agree to terminate merger agreement).
Financial related names showing weakness: NBG -7%, CS -3.1%, SAN -2.9%, BCS -2.6%, DB -2.5%, HBC -2.1%, C -1.8%, IBN -1.7%, BAC -1.4%, .
Metals/mining stocks under significant pressure: AG -8.2%, SLW -6.3%, GG -6.1%, MUX -5.9%, SSRI -5.9%, KGC -5.6%, AUY -5.3%, AU -5.1%, SLV -4.9%, GOLD -4.9%, PAAS -4.9%, GFI -4.8%, IAG -4.5%, RIO -4.4%, GDX -4.2%, NEM -3.8% (downgraded to Market Perform at Cowen based on valuation ), ABX -3.6%, BBL -3.6%, GLD -3.3%, BHP -3.1%, MT -2.7%, EGO -2.3%, VALE -2%, .
Oil/gas related names showing early weakness: STO -3%, WLT -2.8%, SDRL -2.7%, TOT -2.6%, PBR -2.4%, RIG -1.8%, BP -1.6%, CVX -1.1% ( issues case study highlighting Increased performance of Delo for Tahoe Truckee Sierra Disposal), RDS.A -1.1%.
Other news: OSH -10.4% (filed to delay its 10-Q), FIVE -6.3% ( launches secondary offering of 8,563,172 shares of its common stock by selling shareholders), UL -2.5% ( plans to increase stake in Hindustan, according to reports), HLSS -2% (Home Loan Servicing files for 12.5 mln share common stock offering ), RBS -1.9% ( Britian preparing RBS (RBS) breakup and Lloyds (LYG) stake sale, according to reports), NOK -1.3% (WSJ.com reported NOK and MSFT previously discussed device unit deal), MSFT -1% (Microsoft says an internet connection will not be required to play offline Xbox One games; users can trade-in, lend, resell, gift, and rent disc based games ), GOOG -1% (CNIL orders Google to comply with the French Data Protection Act, within three months), FB -1% (plans to introudce a Video-Sharing Service, according to reports ), AHT -0.7% (announces offering of 11 mln shares of common stock), NLY -0.8% (cuts Q2 dividend to $0.40 from $0.45 per share in prior quarter).
Analyst comments: FDX -2% (downgraded to Neutral from Overweight at JP Morgan, downgraded to Equal-Weight from Overweight at Morgan Stanley), DIS -1.4% (downgraded to Neutral at Goldman), AEO -1.2%and ARO -0.8% (downgraded to Perform from Outperform at Oppenheimer).
8:14 am Apollo Global Management's McGraw-Hill Education agrees to acquire ALEKS Corporation -- Terms of the agreement were not disclosed (APO) : Co announced that it has signed an agreement to acquire ALEKS Corporation, the privately held developer of the ALEKS adaptive learning technology for the K-12 and higher education markets. The closing of the transaction is expected to occur early in the third quarter of 2013.
8:13 am FedEx unveils strategic acquisition deal in Southern Africa; acquires business operations of Supaswift and its subsidiaries in 7 countries (FDX) : Co announces it has completed the first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd. in five countries in Southern Africa, including South Africa, Malawi, Mozambique, Swaziland and Zambia, and is also in discussions to acquire Supaswift's businesses in Botswana and Namibia. Financial terms were not disclosed.
Once the acquisition is completed, FedEx Express will have direct access across the seven markets to 39 facilities and will welcome ~1,000 of Supaswift's team members. FedEx Express will then offer a complete suite of FedEx branded export, import and domestic solutions, connecting Southern Africa to more than 220 countries and territories worldwide, enhancing customers' business flexibility and speed to market.
8:09 am Gapping up (:SCANX) : In reaction to strong earnings/guidance: FNSR +9.5%, RHT +3.4%.
A few FNSR peers are ticking higher: OCLR +3.3%, JDSU +2.6%, CIEN +0.9%.
Other news: SLTM +12.1% (receives new FDA 510(k) clearance for treatment of skin pigmentation), DRRX +10.8% (thinly traded, announces FDA acceptance of NDA Submission for POSIDUR), CLSN +9.8% (ThermoDox HEAT Study Findings Reviewed; emerging post-hoc findings suggest that the heating cycles can be optimized to markedly improve radiofrequency ablation when used with ThermoDox), CLNT +6.4% (ticking higher, receives $2.0 mln in new orders for airflow-dyeing machines), NTWK +5.3% (awarded agreement valued in excess of $10 million with major global auto finance captive company), GME +4.9% ( following reversal in used games policy for Xbox One), ZN +4.9% (ticking higher, to conduct in-well testing operations at its Elijah #3 well), CYTK +4.4% (continued strength), ZLCS +3.6% (publishes preclinical data in Science Translational Medicine showing the beneficial effects of applying the Zalicus combination high-throughput screening technology for the potential treatment of ebolavirus infections), RYAAY +3% (reports that indicate the co is planning buybacks and/or special dividend), WAGE +2.3% (will be added to S&P 600), SSYS +2.2% (to acquire MakerBot for initial value of ~$403 mln in all stock transaction), CAMP +1.9% (will replace Palomar Medical Technologies S&P600), SD +1% (appoints CFO Bennet to CEO (former CEO Ward leaving the co), AEC +0.8% (will be added to S&P 600).
Analyst comments: BBBY +1.3% (tgt to $82 from $70 at Barclays, tgt to $79 from $75 at Canaccord Genuity), HPQ +0.3% (light volume, upgraded to Outperform from Market Perform at Wells Fargo).
8:08 am Netsol signs new $10 mln deal with a major global auto captive finance company (NTWK) : Co announces that it has signed a new agreement valued at more than $10 mln to implement the complete front and back office modules of the NetSol Financial Suite Platform for a major global auto captive finance company. The customer's name was not disclosed.
8:04 am Cisco Systems announces intent to acquire Composite Software for ~ $180 mln in cash and retention-based incentives (CSCO) : Co announced its intent to acquire privately held Composite Software, Inc., a data virtualization software and services. "Cisco's strategy is to create a next generation IT model that provides highly differentiated solutions to help solve our customers' most challenging business problems," said Gary Moore, Cisco president and chief operating officer.
Under the terms of the agreement, Cisco will pay approximately $180 million in cash and retention-based incentives in exchange for all shares of Composite. The acquisition of Composite is expected to close in the first quarter of fiscal year 2014, subject to customary closing conditions.
8:04 am Orient Paper announces RMB150M financing arrangement (ONP) : Co announces it has entered into a sale-leaseback financing arrangement with China National Foreign Trade Financial & Leasing Co., Ltd on June 16, 2013, for a total financing proceeds in the amount of RMB150 million (approximately US $24 million). All proceeds from the Financing Arrangement will be used to finance the company's business expansion into the tissue paper segment, including the constructions of the two production lines and other infrastructure of the paper mill in the Wei County Industrial Park.
The Financing Arrangement involves substantially all of ONP's paper machines and production facilities. As part of the Financing Arrangement, the company will sell and then lease back the Production Facilities for a three-year term. The aggregate rental payable during the three-year term is approximately RMB 166.4 million (approximately US$ 26.4 million), with an implicit interest rate of 6.15% per annum and an upfront one-time leasing service fee of 5.55%. Under the terms of the Financing Arrangement, the ownership of the Production Facilities will be transferred back to the Company for a nominal fee of RMB15,000 (approximately US$2,400) at the end of the 3-year term.
8:03 am Celsion's ThermoDox HEAT study findings reviewed at the 2013 ECIO in Budapest, Hungary on June 19 and 20, 2013; emerging post-hoc findings suggest that the heating cycles can be optimized to markedly improve radiofrequency ablation when used with ThermoDox (CLSN) : Co announced that Professor Riccardo Lencioni, MD, FSIR, EBIR, 2013 ECIO Program Co-Chairman and the Director of the Division of Diagnostic Imaging and Intervention at Pisa University School of Medicine in Italy and Lead European Principal Investigator for the HEAT Study reviewed the clinical trial results from the Co's Phase III HEAT Study including findings from the HEAT Study post-hoc analysis at the 2013 European Conference on Interventional Oncology, which is being held June 19-22, 2013 in Budapest, Hungary.
The emerging post-hoc findings suggest that the heating cycles can be optimized to markedly improve radiofrequency ablation when used with ThermoDox. The post-hoc data indicates that ThermoDox may provide potential for clinically relevant improved progression free survival and Overall Survival outcomes. Professor Lencioni made two presentations on hepatocellular carcinoma and related advances in interventional management.
8:03 am Federal-Mogul defers refinancing and extends rights offering expiration date (FDML) : Co commenced a common stock rights offering on June 7, 2013. At that time, the co had initiated discussions with potential financing sources in connection with the refinancing of its outstanding indebtedness, and the co expected that the refinancing would be completed shortly after the completion of the rights offering. Due to volatile market conditions, the co intends to defer the refinancing activities. The Company will continue to evaluate market conditions and other relevant factors in connection with the potential refinancing of all or a portion of the Company's outstanding indebtedness. There can be no assurances as to the ultimate timing or terms of any such refinancing.
8:03 am Axcelis Tech announces that its CFO Jay Zager will be retiring (ACLS) : Co announces that CFO Jay Zager will be retiring from the company at the end of August, 2013. Effective July 1, Kevin Brewer will become exec VP and interim CFO, continuing his role as executive VP, global operations. Zager will retain the title of executive VP, finance until his retirement to facilitate a transition as the co conducts an external search for a CFO.
8:03 am Pingtan Marine Enterprise signs master agreement to acquire 46 fishing vessels For ~$410.1 mln (PME) : Co announces it recently expanded its fleet through the signing of a "Master Agreement" to purchase 46 fishing trawlers in a transaction totaling ~$410.1 mln. The transaction is subject to the receipt of government approvals; however Pingtan began operating the vessels upon the signing of this agreement. The co immediately began reporting operating results from this transaction for a short period in the current second quarter, with a full quarter beginning in the third quarter of 2013.
Description of Assets -- Appraisal Process
The co expects these vessels will greatly increase its fish harvest volume, revenue, and profitability. Pingtan's fleet increases from 40 to 86 and its carrying capacity (fish) increases by ~45,000-50,000 tons (effectively doubling the co's current capacity).
While the revenues generated vary depending on location, the co expects each vessel to contribute revenues of ~$3-$3.5 mln annually, and net income of ~" mln.
8:02 am Chevron issues case study highlighting increased performance of delo for tahoe truckee sierra disposal (CVX) : Chevron Products Company, a Chevron U.S.A released a case study demonstrating that use of Delo 400 LE SAE 15W-40 decreased mechanical wear for the Tahoe Truckee Sierra Disposal fleet in California's Sierra Nevada Mountains.
8:02 am Solta Medical receives new FDA 510(k) clearance for treatment of skin pigmentation (SLTM) : Co announces it has received a new FDA 510(k) clearance of its Fraxel? DUAL 1550/1927 laser system for the treatment of pigmented lesions such as, but not limited to lentigos (age spots), solar lentigos (sun spots) and ephelides (freckles).
In addition to the treatment of pigmented lesions, the Fraxel DUAL system is indicated for use in dermatological procedures requiring the coagulation of soft tissue, as well as for skin resurfacing procedures. Specific additional indications include actinic keratosis, melasma, treatment of periorbital wrinkles, acne scars and surgical scars.
8:02 am Ampio Pharma announced that majority-owned subsidiary Luoxis Diagnostics announced positive summary data from the first clinical trial using the co's oxidation-reduction potential diagnostic system (AMPE) : Co announced that majority-owned subsidiary Luoxis Diagnostics announced positive summary data from the first clinical trial using the company's oxidation-reduction potential (:ORP) diagnostic system. The ORP system is a novel, patented point-of-care diagnostic platform measuring markers of oxidative stress and antioxidant reserves. These study results are the first to be reported among multiple clinical trials that have been conducted across numerous critical illnesses. The results are reported from a prospective clinical trial of 153 elderly hip fracture patients who suffered their hip fractures as a result of a fall, the most common cause of hip fractures among the elderly. When studying the markers measured by the ORP diagnostic system, investigators demonstrated statistically significant correlations between patients' antioxidant reserve levels and established comorbidity measures. Investigators also reported a statistically significant correlation between patients' oxidation-reduction potential levels and injury severity as measured by the validated Injury Severity Score. These clinical study results confirm the predictive value of oxidation-reduction potential and antioxidant reserves and their validity as prognostic markers among elderly hip fracture patients in a clinical setting. Detailed results from this clinical trial will be published later this year. The results from this study and the other completed studies will support Luoxis' planned regulatory submissions in the US, Canada, Europe, and other large markets to enable regulatory clearance around the world.
8:01 am Alnylam Pharma present pre-clinical data with ALN-CC5; research demonstrates potent, dose-dependent, and durable silencing of serum C5 and inhibition of complement hemolytic activity by ~ 90% (ALNY) : Co announced that it has presented new pre-clinical data with ALN-CC5, an RNAi therapeutic targeting complement component C5. These data were presented at the 6th International Conference on Complement Therapeutics being held June 18 - 23, 2013 in Kos, Greece.
The complement system plays a central role in immunity as a protective mechanism for host defense, but its dysregulation results in serious, life-threatening complications in a broad range of human diseases including paroxysmal nocturnal hemoglobinuria (:PNH), atypical hemolytic-uremic syndrome, myasthenia gravis, neuromyelitis optica, amongst others. C5 is a genetically and clinically validated target; loss of function human mutations are associated with an attenuated immune defense against certain infections and intravenously administered anti-C5 monoclonal antibody therapy has demonstrated clinical activity and tolerability in a number of complement-mediated diseases
8:00 am Gold Resource discovers new mineralized zone at Arista Deposit with 500 meter stepout including 2.2 meters of 12.91 Grams Gold and 410 Grams Silver (GORO) : Co announces it intercepted new mineralization ~500 meters northeast of the Arista vein system in a stepout hole cutting 2.2 meters of 12.91 grams per tonne gold and 410 grams per tonne silver.
Discovery hole number 513024 was drilled from the Arista deposit's level 10 underground drill station. The hole was drilled to the northeast at a relatively shallow angle of -20 degrees. The Company targeted a parallel structure to the Arista deposit it calls the "Switchback" which had previously been mapped at the surface.
A follow-up hole, number 513028, was drilled from the same underground drill station and in the same direction but at a steeper angle of -44 degrees. This hole intercepted the vein approximately 30 meters below the previous intercept in hole 513024.
7:59 am S&P futures vs fair value: -13.30. Nasdaq futures vs fair value: -24.50. (:WRAPX) : U.S. equity futures trade sharply lower amid cautious overseas action after yesterday's comments from Federal Reserve Chairman Ben Bernanke were interpreted as a hawkish warning of an impending modification to the Fed's asset purchase program. The Fed Chairman's statement was coupled with a caveat, saying the economy must continue showing improvement before modifications can be made, but it appears global markets have looked past this stipulation and focused on the potential timeframe instead. The S&P 500 futures trade lower by 0.9%.
Looking at overnight developments:
- Asian markets ended broadly lower. Japan's Nikkei fell 1.7%, China's Shanghai Composite dropped 2.8%, and Hong Kong's Hang Seng lost 2.9%.
- In regional economic data:
- China's HSBC Manufacturing PMI fell to 48.3 from 49.2 (49.4 expected).
- Japan continued to be a net seller of foreign bonds with a weekly outflow of JPY402.50 billion (-JPY394.40 billion prior).
- New Zealand's GDP rose 0.3% quarter-over-quarter (0.6% expected, 1.5% prior).
- Looking at news:
- The ongoing liquidity crunch in China caused the overnight interbank rate to spike all the way to 25% as the People's Bank of China chose not to inject liquidity into the system.
- Japan's Nikkei settled in the red despite the strengthening of dollar/yen. The Nikkei declined 1.7% while dollar/yen climbed over 1.0% to 97.00 by the end of the Asian session. Currently, the pair trades just above 98.00.
- In regional economic data:
- Major European indices hover near their lows as midday nears. Great Britain's FTSE is lower by 2.3% while Germany's DAX and France's CAC are both down near 2.5%.
- Regional economic data was plentiful:
- The Eurozone Manufacturing PMI ticked up to 48.7 from 48.3 (48.6 expected) while Services PMI rose to 48.6 from 47.2 (47.5 forecast).
- Germany's Manufacturing PMI fell to 48.7 from 49.4 (49.8 expected) while Services PMI rose to 51.3 from 49.7 (50.0 forecast). In addition, PPI declined 0.3% month-over-month (-0.1% expected, -0.2% prior).
- French Manufacturing PMI rose to 48.3 from 46.4 (47.0 expected) while Services PMI ticked up to 46.5 from 44.3 (44.8 forecast).
- Italian industrial orders rose 0.6% month-over-month (1.1% forecast, 1.8% previous).
- Great Britain's retail sales rose 2.1% month-over-month (0.8% expected, -1.1% prior) while core retail sales also increased 2.1% month-over-month (0.9% forecast, -1.2% prior). In addition, CBI Industrial Trends Orders ticked up to -18 from -20 (-15 expected).
- In news:
- The Bank of England said five of eight banks had an aggregate capital shortfall of GBP27.1 billion at the end of 2012.
- Regional economic data was plentiful:
- Ebix (EBIX 12.00, -7.72) has plunged 39.2% after the company agreed to terminate its merger agreement with an affiliate of Goldman Sachs (GS 161.56, -2.59).
- Red Hat (RHT 47.78, +1.56) trades higher by 3.4% after beating on earnings and revenue.
7:48 am On The Wires (:WIRES) :
- Alliance Data Systems (ADS) announced that its Canadian loyalty business signed a new multi-year agreement with Eastlink, which delivers advanced video entertainment, and communications services to residential, business and public sector customers in Atlantic Canada, Ontario, Quebec, Alberta, and British Columbia, as well as Bermuda.
- Pratt & Whitney, a division of United Technologies (UTX), announced new orders for more than 1,000 engines, including options, and highlighted key milestones for its military engines programs - including the F135 engine - at the 2013 Paris Air Show.
7:36 am Eastman Kodak and major financial institutions agree to arrange exit financing package; debt financing of up to $895 mln to be arranged by J.P. Morgan, Bank of America Merrill Lynch and Barclays (EKDKQ) : Co announced that it has reached agreements with J.P. Morgan, Bank of America Merrill Lynch, and Barclays to arrange new post-emergence credit facilities of up to $895 million. Affiliates of J.P. Morgan, Barclays and Bank of America Merrill Lynch will serve as Joint Lead Arrangers for senior secured term loans of up to $695 million. In addition to this term financing, affiliates of Bank of America Merrill Lynch, Barclays and J.P. Morgan will act as Joint Lead Arrangers for a new senior secured asset-based revolving credit facility of up to $200 million, and have committed to provide $130 million of this facility, subject to the satisfaction of certain conditions. This comprehensive financing package will enable Kodak, at emergence, to repay its secured creditors under the current senior and junior Debtor-in-Possession loan facilities, finance its exit from Chapter 11, and meet the company's post-emergence working capital and liquidity needs. The proposed term loan financing is expected to provide the company with more favorable terms compared to the existing rollover exit financing commitment.
Co also will file an Amended Disclosure Statement with the Bankruptcy Court in the coming days, which will include, among other things, provisions pertaining to the previously announced Rights Offering Agreement and financing agreements. The Disclosure Statement is subject to approval by the Court.
7:33 am Pingtan Marine Enterprise announces that its previously filed registration statement on Form S-3 was declared effective by the SEC at 4:00PM on June 19, 2013 (PME) :
7:31 am Cleantech Solutions receives $2.0 mln in new orders for airflow-dyeing machines (CLNT) : Co announced that the Company has received purchase orders totaling RMB 12.2 million (~$2.0 mln) for 21 airflow-dyeing machines from a new domestic customer. Cleantech Solutions has received an advance payment of ~$0.4 mln, or 20% of the purchase price, will receive an additional 70% of the purchase price upon delivery, and will receive the remaining 10% within six months of delivery. The Company expects to begin delivering the units in September 2013.
7:30 am Carlyle acquires Marelli Motori for EUR212 mln (CG) : CO announced that a company wholly owned by funds it manages has signed an agreement to acquire Marelli Motori from Melrose Industries PLC (LSE: MRO). The transaction will be effected by the sale of Marelli Overseas Limited, the holding company of Marelli Motori, and is expected to close in August 2013. Capital for this investment will come from Carlyle Europe Partners III L.P., a 5.3 billion Euro fund that makes mid- and large-cap investments.
7:30 am ChinaEdu (thinly traded) Announces Receipt of 'Going Private' Proposal at a proposed price of $2.33 in cash per ordinary share, or $7.00 in cash per ADS (CEDU) : Co announces that its board has received a preliminary, non-binding proposal letter dated June 20, 2013 from Julia Huang, executive chairman of the board of directors and Shawn Ding, CEO of the Co to acquire all of the outstanding ordinary shares of the Co not currently owned by the Buyer Parties and certain other shareholders of the Co who may join the Buyer Parties, including ordinary shares represented by the Co's ADSs (each representing three ordinary shares), at a proposed price of $2.33 in cash per ordinary share, or $7.00 in cash per ADS.
The Co's board of directors intends to form a special committee of disinterested directors to consider the proposal and cautions the Co's shareholders and others considering trading in its securities that the board has just received the proposal and has not made any decisions with respect to the Co's response to the proposal. There can be no assurance that any definitive offer will be made by the Buyer Parties or any other person, that any definitive agreement will be executed relating to the proposed transaction, or that this or any other transaction will be approved or consummated.
7:27 am Dollar Tests 82.00: 10-yr: -18/32..2.423%..USD/JPY: 97.85..EUR/USD: 1.3207 (:SUMRX) : The Dollar Index has climbed steadily in overnight trade with action holding on session highs near 82.00. The flight into dollars has been noticeable as it has been viewed as a safe haven amid the selloff in risk assets. Click here to see a daily Dollar Index chart.
- EURUSD is -105 pips at 1.3190 despite Flash Manufacturing and Services PMI data from most of the region topping estimates. German Flash Manufacturing PMI (48.7 actual v. 49.9 expected, 49.4 previous) was the lone number to miss expectations while German Flash Services PMI (51.3 actual v. 50.1 expected, 49.7 previous) was the only reading to post a number indicating expansion. Today's slide has the single currency testing support in the 1.3200 region while the 50-, 100-, and 200-day moving averages loom just below near 1.3080.
- GBPUSD is -30 pips at 1.5460 but has managed to rally off its worst levels. The pair dipped to 1.5415 ahead of the better than expected retail sales data (2.1% MoM actual v. 0.8% MoM expected), managing to see a run to 1.5480 before giving back some of the advance. Also released was CBI Industrial Order Expectations, which posted a weaker than anticipated -18 (-15 expected, -20 previous). Sterling bulls will look to defend the 50-day moving average (1.5375).
- USDCHF is +45 pips at .9325 as trade continues to climb off the .9200 support level. Buying surfaced after the Swiss National Bank held its Libor Rate at less than 0.25% and announced no change to its EURCHF1.20 floor, running the pair above its 200-day moving average (.9340) before traders began to take profits. Bulls cannot get too excited until a breach of the .9500 area as the 50-, 100-, and 200-day moving averages all come into play before then.
- USDJPY is +150 pips at 97.80 despite a rather quiet session in Japan. Today's bid has the pair higher for a fourth consecutive session with action tacking on almost 400 pips over that time. The 99.20 area will likely provide some resistance as the 50-day moving average looms in the vicinity.
- AUDUSD is -60 pips at .9220 with trade breaking down to its lowest level since September 2010. Today's slide comes following the disappointing Chinese HSBC Flash Manufacturing PMI (48.3 actual v. 49.4 expected, 49.2 previous), and after neighboring New Zealand posted a weaker than anticipated 0.3% QoQ GDP (0.6% QoQ expected). USDCNY ticked up to 6.1285, but participants are watching SHIBOR closely as the overnight lending rate spiked above 25%.
- USDCAD is +70 pips at 1.0340 after earlier buying made for a test of the May highs near 1.0380. Traders will be monitoring the 1.0400/1.0500 area as a breakout could ignite an inverse head and shoulders pattern that targets 1.1000.
7:18 am On The Wires (:WIRES) :
- Microsemi (MSCC) and Future Electronics announced that the two cos have entered into a broad-based, global distribution agreement. Future will provide worldwide sales, design support and fulfillment services for Microsemi's complete line of semiconductor systems solutions, excluding certain government products and services.
- MRC Global (MRC) announced that its U.S. operating co, McJunkin Red Man, has been awarded a five year extension to their integrated supply agreement with NiSource (NI) for the supply of pipe, valve and fitting products and supply chain services to NiSource's pipeline, distribution and midstream businesses across the co's 16 state network.
- Amyris (AMRS) and Total announced a successful demonstration flight at the Paris Air Show using a breakthrough technology that converts plant sugars into renewable jet fuel.
- CyrusOne (CONE) announced that the first phase of a 160,000-square-foot expansion at its Houston West campus is fully operational with 40,000 square feet of space commissioned.
7:09 am FuelCell Energy prices senior unsecured convertible notes offering; (FCEL) : Co announced that it has entered into an underwriting agreement with respect to an offering of $38 million principal amount of its 8.00% senior unsecured convertible notes due June 15, 2018. The co will pay interest semi-annually in arrears and the notes will mature on June 15, 2018, unless converted. The notes are convertible into shares of FuelCell Energy common stock at a conversion rate of 645.1613 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of $1.55 per share of common stock. The co intends to use the estimated net proceeds of approximately $36 million from the offering for working capital and general corporate purposes.
7:06 am Durect announces FDA acceptance of NDA Submission for POSIDUR (DRRX) : Co announces that the New Drug Application for the investigational product POSIDUR has been accepted by the FDA indicating that the application is sufficiently complete to permit a substantive review.
POSIDUR is a post-operative pain relief depot that utilizes DURECT's patented SABER technology to deliver bupivacaine and is designed to provide up to three days of pain relief after surgery. DURECT submitted the NDA as a 505(b)(2) application. The PDUFA goal date has been confirmed as February 12, 2014.
7:02 am United Continental: United Airlines announces order for Airbus A350-1000 aircraft (UAL) : Co announced an order with Airbus for new A350-1000 aircraft. The agreement converts United's existing order for 25 A350-900s into A350-1000s and adds 10 firm orders for A350-1000s, giving the airline a total order of 35 aircraft. The increased seating capacity of the A350-1000 will enable United to replace older, less efficient aircraft currently serving long-range, high-demand markets. United expects delivery starting in 2018.
7:02 am Curis announces U.S. patent issuance strengthening intellectual property position of PI3K-HDAC inhibitor CUDC-907 (CRIS) : Co announced the issuance of U.S. Patent No. 8,461,157, which claims methods of treating human diseases or disorders mediated by one or more of phosphoinositide 3-kinase, mammalian target of rapamycin and histone deacetylase proteins, using compounds from a genus of small molecules with dual inhibitory properties, including but not limited to CUDC-907, a proprietary clinical stage dual inhibitor of PI3K and HDAC enzymes.
7:01 am IMAX and Cinestar sign revenue-share agreement to bring the IMAX to iconic Berlin Theatre (IMAX) : IMAX and CineStar Cinemas, Germany's largest exhibitor and a subsidiary of Amalgamated Holdings, Australia's leading entertainment and hospitality company, announce a revenue-sharing agreement for an IMAX theatre in Germany to be added to the landmark CineStar Sony Centre multiplex at Potsdamer Platz in the heart of Berlin.
Under the terms of the agreement, the new IMAX theatre at the CineStar Sony Centre will eventually transition to IMAX's next-generation laser digital projection system, which is expected to set a new benchmark as the industry's premium entertainment experience.
In addition, IMAX announced that Event Cinemas, another Amalgamated Holdings subsidiary, will install IMAX's upcoming next-generation laser digital projection technology at its flagship Event Cinemas Queen Street IMAX theatre in Auckland.
7:00 am PowerSecure adds $25 mln long-term debt facility; also extends existing $20 million revolver through 2016 (POWR) : Co announced it has taken advantage of the very favorable interest rate environment to secure a new $25 mln, seven year term debt facility. The company plans to execute interest rate swaps to achieve a fixed interest rate, which it estimates will be in the 3.7 to 3.9 percent range given current market rates, on a majority of the term facility's principal amount. In addition, the company has extended its existing $20 mln revolving debt facility through 2016. There is currently nothing drawn on this revolver. These actions provide the company with up to $45 mln of low-cost, long-term debt capacity to support its growth and future investments in company-owned distributed generation systems, additional utility services equipment, potential acquisitions and working capital.
6:48 am On The Wires (:WIRES) :
- Amdocs (DOX) announced that XL Axiata, an Indonesian mobile service provider, has deployed the Amdocs Mobile Payments solution to enable direct carrier billing for leading app stores.
- Mattson Technology (MTSN) has shipped multiple systems of its Helios XP rapid thermal processing system for use in mass production at a major foundry.
- Integrated Device Technology (IDTI) announced a low-noise timing chipset optimized for use in wireless base transceiver station radio cards.
- Ericsson (ERIC) and Russian mobile operator Mobile TeleSystems announced a strategic cooperation to jointly develop ICT infrastructure for an LTE network rollout during the 17th St. Petersburg International Economic Forum. Ericsson has been chosen to deploy the LTE network in four regions covering more than half of Russia, thus becoming MTS's main vendor.
6:41 am S&P futures vs fair value: -13.00. Nasdaq futures vs fair value: -26.00. :
6:41 am European Markets : FTSE...6200.57...-148.30...-2.30%. DAX...7991.50...-205.60...-2.50%.
6:41 am Asian Markets : Nikkei...230.64...+13014.60...-1.70%. Hang Seng...20382.87...-604.00...-2.90%.
6:26 am Exide Tech issues statement on Vernon Facility; confirms resumption of operations (XIDE) : Co issues statement concerning Superior Court's order permitting Exide to resume operations at its Vernon, California plant. A further hearing at which the Court will decide whether to issue a preliminary injunction will be held on July 2, 2013.
"...The Judge's decision has allowed us to call 60 of our employees back to work. Returning employees will be provided refresher safety training. We are eager to start recycling batteries again and providing this important environmental service to California."
6:25 am On The Wires (:WIRES) :
- Acacia Research (ACTG) announced that its United Messaging Solutions subsidiary has entered into a settlement and license agreement with Citigroup (C). The agreement resolves litigation that was pending in the United States District Court for the Northern District of Illinois.
- CombiMatrix (CBMX) has been selected by Pathology to be its exclusive provider of chromosomal microarray tests for the Products of Conception testing market throughout the United States.
- Astex Pharmaceuticals (ASTX) announced that updated clinical data from the dose escalation part of a randomized phase 1/2 clinical trial of subcutaneous SGI-110, a novel hypomethylating agent, in patients with relapsed/refractory acute myelogenous leukemia will be presented in an oral session during the European Cancer Congress 2013 in Amsterdam, Netherlands Sep 27 - Oct 1, 2013.
- Energizer chose Ascent Solar Technologies (ASTI) to be the solar panel provider for donated Energizer lanterns and lights.
- Northrop Grumman (NOC) has been awarded a contract by the U.K. Ministry of Defence to design, develop, integrate, test and support a Fuel Quantity Indicator System for the Sentry E-3D Airborne Warning and Control System aircraft based at RAF Waddington. The contract modification for FQIS is valued at more than $17 mln over three years.
- Ultratech (UTEK) announced the first shipment of its LSA201 system to a leading IDM.
- Tiger Media (IDI) acquired eight key lease contracts from Symbol Media which will allow the co to take 100% control of the eight key Shanghai shopping center locations. Consideration for the transaction was $2.2 mln which will be paid through the issuance of 2.05 mln Tiger Media ordinary shares to Symbol Media.
- The Board of Directors of Central Valley Community Bancorp (CVCY) announced that Visalia Community Bank shareholders approved the merger between Visalia Community Bank and Central Valley Community Bancorp at a special meeting held on Tuesday, June 18, 2013.
6:21 am On The Wires (:WIRES) :
- CSG International, Inc. (CSGS) announced that Virgin Mobile France has implemented CSG Interconnect as a key component of its wholesale billing management solution.
- Toshiba Corporation (TOSBF) announced the launch of the slim, 7mm high MQ01ABFH hybrid drive series. Equipped with Toshiba's NAND flash memory and available in 500GB and 320GB capacities, the MQ01ABFH series is the Toshiba's first 7mm hybrid drive family.
- Level 3 Communications (LVLT) and Monaco Telecom have announced the signing of a strategic agreement that will connect the Principality of Monaco to Level 3's global Internet backbone network.
- Spirit Airlines (SAVE) and Airbus announced that they have entered into an agreement for the firm order of 20 Airbus A321 aircraft. These aircraft are in addition to the 96 aircraft not yet delivered under Spirit's existing order and will be scheduled for delivery between 2015 and 2017.
- Youku Tudou (YOKU) and Qualcomm (QCOM) announce a collaboration on H.265 technology, which will allow viewers mobile access to high quality video content on Youku when using most Qualcomm? Snapdragon processor powered devices.
- Raytheon Company (RTN) has initiated an internally funded program to enhance its combat-proven 155mm Excalibur GPS-guided projectile with a new guidance and navigation unit with a semi-active laser end-game targeting capability.
- Silver Spring Networks (SSNI) announced it is expanding its Smart City infrastructure platform through a new collaboration with street lighting control pioneer SELC. Through this collaboration, the parties intend to integrate Silver Spring's IPv6 networking platform with SELC's street light control systems and jointly bring the combined solution to market globally.
6:21 am IHS announces acquisition of PFC Energy; financial terms not disclosed (IHS) : Co announced the acquisition of PFC Energy, a co providing information, insight, and analytical products and services for the oil and gas value chain. "With PFC Energy, we join forces with a company that already serves a blue-chip client base composed of leading oil, gas and financial companies. Their market analysis and models integrate seamlessly with our capabilities, enabling IHS to accelerate our current organic development across the entire oil and gas value chain."
6:19 am PTC Therapeutics prices upsized 8.372 mln share IPO at $15.00, near high end of $13-16 expected range (PTCT) : Co originally planned to offer 6.9 mln shares.
6:17 am Pier 1 Imports reports EPS in-line, revs in-line; guides FY14 EPS in-line (PIR) : Reports Q1 (May) earnings of $0.19 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.19; revenues rose 9.3% year/year to $394.8 mln vs the $394.89 mln consensus.
Comparable store sales increased 5.9% during the first quarter compared to last year's comparable store sales gain of 7.2%. Comparable store sales results for the quarter were primarily attributable to increases in store traffic and higher average ticket.
Co issues in-line guidance for FY14, sees EPS of $1.27-1.32 vs. $1.32 Capital IQ Consensus Estimate and above its prior guidance of $1.26-1.31.
Additional Fiscal 2014 Financial Guidance
- Comparable store sales growth in the mid single-digit range
- EBITDA growth in the range of 15-18%
- Capital expenditures of ~$75 mln
- Approximately 30 store openings and 14 closing/relocations for a net increase of 16 stores
6:05 am IHS beats by $0.01, misses on revs; guides FY13 EPS in-line, revs in-line (IHS) : Reports Q2 (May) earnings of $1.04 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 8.0% year/year to $418.1 mln vs the $423.32 mln consensus.
Co issues in-line guidance for FY13, sees EPS of $4.23-4.43 vs. $4.35 Capital IQ Consensus Estimate; sees FY13 revs of $1.66-1.73 bln vs. $1.68 bln Capital IQ Consensus Estimate.
Commentary: "Strong performance and operational execution in the Americas was offset by adverse foreign currency movements in EMEA that masked solid execution in the face of continuing economic challenges in the region. Foreign currency changes also negatively impacted overall performance in APAC as we continue to invest in the region to fully capture the growth potential."
6:03 am Recovery Energy secures funding commitments for the initial $2.2 mln tranche of its private offering of $5 mln of convertible debentures (RECV) : Co announced that it has entered into agreements with certain investors to issue in a private placement transaction $2.2 mln of its 8% Senior Secured 2014 Convertible Debentures. Terms of these debentures are substantially identical to the terms of the Company's currently outstanding debentures, including a current conversion price of $4.25 per common share. The participants in this private placement will have the opportunity to purchase additional convertible debentures up to a total amount of $5 million in accordance with the terms of a previously announced agreement dated April 16, 2013, subject to board approval.
3:36 am Pluristem Therapeutics's preclinical results for Its PLX-RAD cells published in the Journal PLOS ONE (PSTI) : Co announces that preclinical results for its Placental eXpanded RAD cells in the treatment of bone marrow disease have been published in peer reviewed journal PLOS ONE.
A study titled "Mitigation of lethal radiation syndrome in mice by intramuscular injection of 3D cultured adherent human placental stromal cells" was published on June 18th in the open access journal PLOS ONE
The treatment of intramuscular injection of PLX-RAD cells increased the survival of 7.7Gy irradiated mice from about 27% to about 98%. The treated mice regained their weight significantly faster than the few survivors of the controls. The treatment stimulated extensive hematopoietic stem cells proliferation to enable the speedy recovery of the radiation induced depleted bone marrow with parallel increase the number of circulating white blood cells, red blood cells and platelets. The number of CD45+/SCA1+ hematopoietic progenitor cells within the fast recovering population of nucleated bone marrow cells in the irradiated mice was also elevated in the mice treated with PLX-RAD cells.
3:22 am On The Wires (:WIRES) :
- Hawaiian Electric (HE), has asked the Public Utilities Commission for permission to negotiate with five proposed projects that could quickly provide low-cost electricity for Oahu. If the PUC approves, Hawaiian Electric will negotiate power purchase agreements directly with a combined capacity of 64 megawatts. Hawaiian Electric anticipates negotiating long term, 20-year contracts with each project.
- Qualcomm (QCOM) announced it has expanded its entry-level offerings with the addition of six new processors to its Qualcomm Snapdragon 200 class, featuring dual- and quad-core CPUs.
- Logitech (LOGI) announced the expansion of its universal remote control lineup with the Logitech Harmony Ultimate Hub, an appcessory for consolidating all of your remote controls into one simple smartphone app, giving you personalized control of up to eight devices from anywhere in the house, using the smartphone you already own.
- Sikorsky Aircraft (UTX) and Boeing (BA) have formed a joint venture to compete for sustainment services in support of the Kingdom of Saudi Arabia's rotorcraft fleet. Contracts that the joint venture will pursue are administered by the U.S. Government as part of its Foreign Military Sales process.
2:43 am Pharmacyclics: Ibrutinib Phase 2 study results in patients with mantle cell lymphoma published in The New England Journal of Medicine (PCYC) : Co announces that The New England Journal of Medicine published results of a Phase 2 study evaluating the investigational oral Bruton's tyrosine kinase inhibitor ibrutinib in patients with relapsed/refractory mantle cell lymphoma online. These data suggested ibrutinib may be effective and generally well-tolerated in patients with relapsed/refractory MCL.
The study evaluated 111 patients with relapsed/refractory MCL treated with ibrutinib. The majority of patients (86%) had intermediate or high-risk MCL and had previously undergone treatment with a median of three prior therapies before enrollment in the study. Patients were enrolled in two cohorts based on whether they had prior exposure to bortezomib. Overall response rate across both cohorts was 68% with 47% of patients achieving a partial response and 21% achieving a complete response where all signs of cancer are gone. The estimated median response duration was 17.5 months. The median progression free survival was 13.9 months and while the median overall survival for this study has not yet been reached it is estimated to be 58% at 18 months. The overall response to ibrutinib was independent of prior treatment including bortezomib and lenalidomide or underlying risk/prognosis, bulky disease, gender or age. In an initial subset of patients enrolled in the study who have the longest follow up, the response to ibrutinib increased with longer duration of treatment, with the complete response rate increasing from 16% at a median follow-up of 3.7 months to 37% at a median follow-up of 18.2 months.
2:33 am CVB Financial increases Q2 cash dividend to $0.10 from $0.085 (CVBF) :
2:32 am Vitesse Semi prices unwritten public offering of 16.3 mln shares of common stock at $2.15 per share (VTSS) :
2:31 am Kayne Anderson increases quarterly distribution for Q2 to $0.58 from $0.565 (KYN) :
2:29 am Repros Therapeutics prices 3.75 mln shares of common stock at $19.00 per share (RPRX) :
2:24 am Ebix and affiliate of Goldman Sachs (GS) agree to terminate merger agreement (EBIX) : Ebix announces that it and an affiliate of Goldman, Sachs & Co. (GS) have agreed to terminate their previously announced merger agreement. The merger agreement, announced on May 1, 2013, had provided for Ebix to be acquired by an affiliate of Goldman Sachs.
The decision to terminate the merger agreement was the result of a letter received by the Company on June 14, 2013 from the U.S. Attorney for the Northern District of Georgia that it had opened an investigation into allegations of intentional misconduct that had been brought to its attention from the pending shareholder class action lawsuits against the Company's directors and officers, the media and other sources.
2:23 am Dejour Energy closes CAD3.5 mln debt facility (DEJ) : Co announces has closed a fixed term, interest only, CAD3.5 mln debt facility due December 2014, with Calgary, Canada based Invico Performance Yield Fund Limited Partnership. The interest rate is 14% per annum and the principal is repayable at any time following 6 months from today without penalty. The loan facility has been structured as two advances of CAD2.5 mln and CAD1 mln, respectively.
2:18 am Lender Processing announces an adjustment to the consideration mix in its acquisition by Fidelity National Financia (FNF) (LPS) : Lender Processing Services (LPS) announces that Fidelity National Financial (FNF) has exercised its option to adjust the consideration mix in its previously announced acquisition of LPS by increasing the cash component of the total consideration by ~$500 mln and correspondingly decreasing the stock component of the total consideration by an equal amount.
FNF will directly provide $300 million of the $500 million increase, with funds affiliated with Thomas H. Lee Partners, providing the remaining $200 million. The total consideration will be unchanged and the additional $500 million cash component will be offset by an equal reduction in the stock component of the total consideration.
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