What You Need To Know This Week — June 29th, 2019
What You Need To Know This Week
A weekly recap to keep you informed on the most important events this week impacting markets, business, tech and the global economy.
ABBVIE TO BUY ALLERGAN IN $83 BILLION PHARMACEUTICAL DEAL
AbbVie agrees to acquire Botox maker Allergan in an $83 billion cash and stock deal. The blockbuster deal would result in the combined company becoming the fifth largest pharmaceutical firm worldwide. The deal was struck at a 45% premium for Allergan. AbbVie shares were down -15% on the news.
ADDITIONAL ACTIVIST TAKES STAKE IN HUDSON’S BAY AS SHAREHOLDERS CONTINUE PUSH FOR HIGHER PRICE
Canadian activist investor Catalyst Capital recently acquired a stake in retailer Hudson’s Bay from the Ontario Teachers’ Pension Plan. The activist plans to oppose Hudson’s Bay Chairman Richard Baker’s $9.45 takeover offer for the retailer. A spokesman for Catalyst stated the $9.45 offer “undervalues the company’s real estate and the potential for a turnaround at its department stores”.
TRANSAT ACCEPTS FRIENDLY $520 MILLION TAKEOVER FROM AIR CANADA
Air Canada sealed its friendly offer for competitor Transat in an all cash $13.00 per share deal that values Transat at $520 million. The official deal may be a disappointment for Transat shareholders as they were hoping for a higher bid from either Air Canada or potential interloper Group Mach, who recently floated an unsolicited $14.00 offer.
ELDORADO RESORTS TO ACQUIRE CAESARS ENTERTAINMENT IN $17.3 BILLION DEAL
U.S casino operator Eldorado Resorts agreed to buy rival Caesars Entertainment in friendly $17.3 billion merger. The deal came a few months after famed activist investor Carl Icahn took three board seats at Caesars. Shares of Caesars rallied 11.4% on the news while Eldorado shares fell by -13.2%.
Recommended Articles, Podcasts, Books and Tweets
Listen to “The Search for the Truth with the Anonymous Master” as the pseudonymous Jesse Livermore discusses his investment research on Invest Like the Best podcast.
U.S. inflation rate declined to 1.5% year-over-year in May.
Canada’s GDP growth beat expectations for April putting the economy on track to exceed 2% annualized growth in the second quarter.
Private equity “dry powder” hit a record $2.5 trillion.
Small caps and transportation stocks are trading at their lowest level relative to the S&P 500 since 2009.
Small cap stocks have struggled while the S&P 500 hits record highs. Over the past year, the Russell 2000 is down -9.2% while the S&P 500 is up 6.9%.
-The Accelerate Team
