Among the companies with shares expected to actively trade in
Tuesday's session are Chesapeake Energy Corp. (CHK), LeCroy Corp.
(LCRY) and Vertex Pharmaceutical Inc. (VRTX).
Activist investor Carl Icahn reported a 7.6% stake in Chesapeake
Energy on Friday and called for the replacement of at least four of
the embattled natural gas company's current board members. The
company said it would "carefully review" his request. Shares were
up 2.8% premarket.
Teledyne Technologies Inc. (TDY) has agreed to acquire LeCroy
Corp. (LCRY) for roughly $240.6 million in cash, in a bid to extend
offerings of test and measurement products. The deal values LeCroy
at $14.30, a 56% premium to its most recent closing price. Shares
climbed 55% to $14.16 premarket.
Vertex Pharmaceutical Inc. (VRTX) revised the interim results of
a recent clinical trial of cystic-fibrosis patients that had
exceeded expectations and boosted hopes that the drug therapy
tested could have blockbuster sales potential. Shares dropped 21%
to $51.55 in premarket trade as the company said 35% of patients
receiving the combination therapy experienced an improvement in
lung function of at least 5 percentage points, down from the 46%
first reported this month.
The American depositary shares of Spanish banks tumbled
premarket Tuesday as fresh worries about Spain's banking system
arose following the government's announcement of a $24 billion
bailout of Bankia, its third-largest lender by assets. The news
sent Spanish borrowing costs up to 2012 highs. Banco Bilbao Vizcaya
Argentaria SA (BBVA) fell 6.4% to $5.73 premarket while Banco
Santander SA (STD) dropped 5.8% to $5.33.
Interline Brands Inc. (IBI) has agreed to go private in a cash
deal that values the distributor of maintenance and repair products
at roughly $811 million. The company's agreement with GS Capital
Partners and P2 Capital Partners offers shareholders $25.50 a share
in cash, a 42% premium to the stock's Friday closing price. Shares
jumped 41% to $25.34 premarket.
Patriot Coal Corp. (PCX) has named a new chief executive, Irl F.
Engelhardt, to replace Richard M. Whiting as the company struggles
to maintain its financial footing in a challenging market for coal.
Separately, Goldman Sachs upgraded its stock-investment rating on
Peabody to buy from neutral, saying it finds U.S. coal stocks
"attractive" following a recent selloff. In addition to Peabody,
the firm called SunCoke Energy (SXC) and Consol Energy (CNG) its
favorites. Shares of Peabody rose 4.7% to $14.44 premarket, while
Consol Energy climbed 2.6% to $30.36 in light premarket
trading.
Watchlist:
Trustmark Corp. (TRMK) agreed to acquire BancTrust Financial
Group Inc. (BTFG) in a deal valued at about $55.4 million that
gives Trustmark a presence in the Alabama market. BancTrust holders
will receive 0.125 shares of Trustmark common stock for each
BancTrust share. Based on Trustmark's closing price of $24.66
Friday, the deal values BancTrust at about $3.08 a share, a 62%
premium to its Friday close of $1.90.
Total pay for Rite Aid Corp.'s (RAD) top executives jumped
sharply higher in fiscal 2012 due to long-term cash incentive units
that vested after the company reached adjusted earnings targets for
the past three years. In a separate press release, Rite Aid
disclosed Friday that the company's board elected President and
Chief Executive John Standley to the additional position of
chairman, effective next month.
Sanderson Farms Inc. (SAFM) swung to a fiscal second-quarter
profit as increased prices and production returned the poultry
company to profitability.
Watson Pharmaceuticals Inc. (WPI) reached a settlement with Endo
Pharmaceuticals Inc. that resolves patent infringement lawsuits
related to its generic version of the Lidoderm patch. The Endo
Health Solutions Inc. (ENDP) unit had been seeking to block Watson
from selling a generic version of Lidoderm before a U.S. patent for
Lidoderm expires in 2015.
-Edited By Corrie Driebusch and Nathalie Tadena, Dow Jones
Newswires; 212-416-2143; corrie.driebusch@dowjones.com