JBS-Pilgrim’s Pride deal falls through, Activision Blizzard probe expands, cargo ship catches fire
Yahoo Finance's Julie Hyman highlights top business news as JBS backs out of deal to buy Pilgrim's pride, investigators widen a probe into Activision Blizzard, and a cargo ship carrying luxury cars bound for the U.S. catches on fire.
Video Transcript
JULIE HYMAN: Brazilian meatpacking giant JBS has pulled out of a deal to buy US-based chicken processor Pilgrim's Pride. The deal had valued Pilgrim's Pride at around $7 billion. JBS currently owns 80% of the company, but was unable to reach an agreement for a full buyout. Pilgrim's Pride announced earlier this month it had rejected two offers by JBS, the most recent at $28.50 a share, which Pilgrim said undervalued the company. Those Pilgrim's Pride shares, by the way, are plunging today on this news. They're down by 14%.
A new report by the Wall Street Journal shows investigators have widened their probe into Activision Blizzard's leadership and its handling of workplace misconduct claims. The California Department of Fair Employment and Housing has subpoenaed Activision's directors related to the handling of workplace issues.
It's also subpoenaed the LA area police departments for any records they may have relating to Activision's CEO Bobby Kotick and 18 other former and current Activision employees. Activision responded to the subpoenas, calling them a, quote, "extraordinary phishing expedition." This comes as Activision is working to complete its $75 billion sale to Microsoft.
And a cargo ship filled with cars headed from Germany to the US is on fire with no crew aboard in the Atlantic Ocean. That ship caught fire Wednesday, prompting the 22-person crew to abandon ship. Left behind, the cargo of Volkswagens and Porsches that are currently burning with that ship. The 650-foot long vessel has a carrying capacity of 4,000 cars. Luckily, all members of the crew were rescued by the Portuguese Navy. But no telling what ends up happening when you've got a ship on fire like that, Brian Sozzi.
BRIAN SOZZI: Yeah, well, I think my Porsche orders on the ship behind that. So I think I'm good.
