Movers: Transocean, GlobalSantaFe, Merck, Netflix
Transocean (RIG) and GlobalSantaFe (GSF) agree to merge, creating a company with a combined market capitalization of $48 billion based on Friday's closing prices. Terms: RIG holders will to get $33.03 a share in cash and 0.6996 share of the combined company, and GSF holders will get $22.46 a share in cash, 0.4757 share of the new combined company.
Merck & Co. (MRK) posts $0.82 vs. $0.73 a year ago, second quarter EPS (adjusted) on 6% higher worldwide sales, cites continued strong performanc of key products. It raises 2007 EPS guidance to $3.00-$3.10 (excluding restructuring charges).
Schering-Plough (SGP) posts $0.34, vs. $0.16 a year ago, second quarter GAAP EPS on 13% revenue rise.
Netflix (NFLX) falls after the video services outfit announces it is dropping the price of two of its most popular subscription plans by $1. Cantor Fitzgerald downgrades to hold from buy, and Jefferies reportedly downgrades. JP Morgan rates underweight.
United Rentals (URI) agrees to be acquired by affiliates of Cerberus Capital Management in a $6.6 billion deal, including the assumption of about $2.6 billion in debt obligations. Terms: $34.50 cash for each URI share.
Arrow International (ARRO) agrees to be acquired by Teleflex (TFX) in a $2 billion deal. Terms: $45.50 cash per ARRO share. Separately, Teleflex confirms its guidance for $4.05-$4.25 2007 EPS from continuing operations, but notes acquisition will be dilutive to 2007 results.
Opsware (OPSW) agrees to be acquired by Hewlett-Packard (HPQ) in a deal valued at about $1.6 billion, or $14.25 cash per Opsware share.
Lifepoint Hospitals (LPNT) posts $0.43, vs. $0.66 a year ago, second quarter EPS from continuing operations as higher operating costs offset a 17% revenue rise. It sees $0.50-$0.55 third quarter EPS, $0.55-$0.60 for the fourth quarter; and $2.15-$2.25 for 2007.
Halliburton (HAL) posts $1.62, vs. $0.55 a year ago, second quarter EPS on 20% revenue rise. It notes second quarter 2007 includes a net gain of $933 million from the separation of KBR, Inc. recorded in discontinued operations.
Foxhollow Technologies (FOXH) agrees to be acquired by EV3 Inc. in a $780 million cash and stock deal. Terms: 1.45 EVVV shares, plus $2.75 in cash per FOXH share.
Borders Group (BGP) says it sold approximately 1.2 million copies of Harry Potter and the Deathly Hallows on its first day of sales, Saturday, July 21, the highest single day sales of any title ever in Borders history.
Hasbro (HAS) posts $0.03, vs. $0.07 a year ago, second quarter EPS on 31% revenue rise. The toy maker notes second quarter 2007 results including a final mark to market expense of $36.5 million, or $0.21 per share related to repurchase of Lucas warrants.