By Geoffrey Smith
Investing.com -- Stocks in focus in premarket trade on Monday, 13th January. Please refresh for updates.
9 AM ET: Renewable energy generator TerraForm Power (NASDAQ:TERP) stock was up 9.9% after the company said it had received an unsolicited offer from Brookfield Renewable Partners (NYSE:BEP) for the 38% of the company that Brookfield doesn't already own.
Under the terms of the offer, shareholders would ultimately receive 0.36 Class A shares in Brookfield Renewable for each share they hold. That would be worth $17.29 at Friday's close for Brookfield Renewable.
8:42 AM: Alphabet (NASDAQ:GOOGL) was up 0.7%, just under half of the gain it needs to crack a market capitalization of $1 trillion for the first time. There's no market-relevant news flow out of the company this morning, but shares have been on the rise since the news that Google CEO Sundar Pichai would take over as CEO of the holding company too, following the departures of co-founders Larry Page and Sergey Brin. Its market cap at the close Friday stood at $985 billion.
8:30 AM ET: Woodward (NASDAQ:WWD) stock rose 2.5% and Hexcel (NYSE:HXL) stock rose 5.5% after the two companies – both big suppliers to Boeing (NYSE:BA) – announced an all-stock merger.
The deal will allow the two companies to rationalize as they try to cope with the fallout from Boeing’s grounded 737 MAX.
Under the terms of a deal styled as a ‘merger of equals’, Woodward shareholders will end up with 55% of the combined company, as Hexcel shareholders receive 0.625 Woodward shares for each Hexcel share they own.
Hexcel chairman and CEO Nick Stanage will become CEO of the combined company, while Woodward chairman and CEO Tom Gendron will serve as executive chairman until a year after the deal closes. He’ll stay on the board as non-executive chairman for a further year after that.
8:14 AM ET: Ford Motor (NYSE:F) stock rose 0.4% after reporting a 26% drop in sales in China last year, the third year in a row that its sales have fallen there, but a slower decline than in 2018. The company also said it expects the Chinese market to keep shrinking this year.
8:11 AM ET: Anixter (NYSE:AXE) and Wesco International (NYSE:WCC) stock were both in focus after the companies agreed to a cash-and-stock merger that values the former at around $100 a share, 1.5% above Friday’s closing price.
Under the deal, Anixter shareholders will have the right to receive $70 per share in cash, with the balance made up by Wesco stock valued at $15.89 a share.
The deal will leave Wesco’s existing shareholders with 84% of the combined company, and Anixter shareholders with 16%.
“Given the enhanced strategic profile and competitiveness of the combined company, we are confident we will deliver improved growth and earnings, and exceptional cash flow generation,” Wesco chairman and CEO John J. Engel said.
8:05 AM ET: Lululemon Athletica (NASDAQ:LULU) stock rose 2.5% after the company upgraded its revenue and earnings forecasts in the wake of a successful holiday season.
The company said it now expects fourth-quarter net revenue of between $1.37-$1.38 billion, up from a range around $1.32 billion previously. Earnings per shares will be between $2.22 and $2.25, around 5% higher than the company’s previous estimate. The quarter runs through Feb. 2.