Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
💰 Warren Buffet reveals a $6.72 billion stake in ChubbCopy Portfolios

Stocks: Lululemon Higher in Premarket on Strong 4Q; WCC to Buy Anixter

Published 2020-01-13, 08:00 a/m
© Reuters.
BA
-
F
-
WWD
-
AXE_old
-
HXL
-
LULU
-
WCC
-

By Geoffrey Smith

Investing.com -- Stocks in focus in premarket trade on Monday, 13th January. Please refresh for updates.

  • 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.
    • 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

  • 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.

    Latest comments

    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.