Rockwell Automation has shocked everyone by rejecting a $27.5 billion bid by Emerson Electric in a half-cash and half-stock deal. The stock has soared on the news and with analysts now jumping to cover the stock, seeing great growth. Emerson Electric in fact made multiple propositions all of which has been rejected. The company leads in smart manufacturing and has high demand industrial products.
Softbank, Sprint, & T-Mobile
Not all tales of mergers and acquisitions end with a happy story. SoftBank, the majority owner of Sprint, has stated further talks of a Sprint and T-Mobile merger have halted. The two companies no longer seem to join forces. The two telecommunications providers lag behind AT&T and Verizon in infrastructure and users and the joined forces was expected to make them a more serious contender. The two companies have been in talks of merger for the past year with the stock prices of the two nearly doubling. The fate and performance of the two are now under question as well as future SoftBank investments.
Merck & Celgene
Merck and Celgene are two health companies that fell flat on their faces. Merck faced downgrades from multiple firms after a cancer drug withdrawal something that was meant to revitalize growth for the company. The stock fell from around $64 to settling around $55. Celgene is facing the same difficulty that Gilead faced a year ago. The company has nearly zero value in its pipelines and its existing drugs are maturing. The two solutions to this are a buyout to diversify products and upcoming drugs or heavy expenditures in research and development; both of which will greatly lower the value of the company’s cash position as well as position it in risk.
“Sorry” and “disappointed” are two words that came from the CEO of Under Armour as the company has recalculated future earnings and downgraded their future growth. Nike and Adidas in particular are making great efforts in North America and eCommerce, segments of which Under Armour has been the most hurt in. The company has lost incredible stock value in the past year. Many options are available to the company including cost cutting procedures and development of their apparel as well as a buyout.
J.C. Penny might be the new Sears. The company, like almost all retailers, has been freefalling. The company last spring had a stock value above $10, and today it is nearly a quarter of that. The company may be facing bankruptcy soon and further store closings. J.C. Penny also has fell to a market cap below $1 billion. Simon Property Group, Kohl’s, and Nordstrom are among other retailers struggling as the competitive landscape is greatly against brick-and-mortar apparel stores.