Market Wrap: Was Chesapeake Undercut by Sinopec?; RP Management Bids for Elan; BlackBerry's Shocking Sales

February 25, 2013 5:17 PM EST
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Market wrap-up for February 25th

End of the Day: S&P 500 down 27.8 to 1,487.85; Dow Jones down 216.4 to 13,784.17; Nasdaq down 45.6 to 3,116.25

The following is a brief summary of events moving markets today:

* RP Management, LLC announces that contact was made on Monday February 18, 2013 with the Chairman of the Board of Elan Corporation, plc (NYSE: ELN), followed by a meeting then taking place on Wednesday February 20, 2013, at which an indicative proposal was made to acquire the entire issued and to be issued share capital of Elan. Royalty Pharma is proposing, on an indicative basis, to make an offer for Elan of US$11 for every Elan Share and every Elan ADS. For more on the deal, click here.

* Barnes & Noble, Inc. (NYSE: BKS) chairman Leo Riggio filed a 13D with the U.S. SEC stating that he plans to propose to purchase all of the assets of the retail business of the Company. The retail business would include, among other things, Barnes & Noble Booksellers, and; and would exclude NOOK Media LLC (comprising the digital and College businesses).

* Affymax, Inc. (Nasdaq: AFFY) and Takeda Pharmaceutical Company Limited announced that they have decided to voluntarily recall all lots of OMONTYS Injection to the user level as a result of new postmarketing reports regarding serious hypersensitivity reactions, including anaphylaxis, which can be life-threatening or fatal. Peer Amgen (Nasdaq: AMGN) got a little boost throughout the day following the news.

* Mead Johnson Nutrition Company (NYSE: MJN) ended the session about 4.6 percent lower Monday after the Hong Kong government imposed a regulation designed to limit the flow of milk products out of the territory. Approximately 30 percent of Mead Johnson sales in the China/Hong Kong market originate in Hong Kong. Click here for more color.

* BlackBerry (Nasdaq: BBRY) CEO Thorsten Heins said his company was "surprised" at such strong Z10 sales since launch a few weeks back. Comments were made to German news source Frankfurter Allgemeine Zeitung. For more color, click here.

* Chesapeake Energy Corp. (NYSE: CHK) and Sinopec International Petroleum Exploration and Production Corporation (NYSE: SHI) announced the execution of an agreement which provides for Sinopec to purchase a 50 percent undivided interest in 850,000 of Chesapeake’s net oil and natural gas leasehold acres in the Mississippi Lime play in northern Oklahoma (425,000 acres net to Sinopec). The total consideration for the transaction will be $1.02 billion in cash, of which approximately 93% will be received upon closing. According to Bloomberg, the deal values the Mississippi Lime play at $2,400 per acre, versus the $7,000 to $8,000 per acre when Chesapeake valued the asset in a presentation last July.

* Food inspectors from Czechoslovakia said they found traces of horse meat in IKEA's famous Swedish meatballs. The announcement prompted IKEA to halt sales of the meatballs in 21 European markets. Most of the meatballs are made by Familjen Dafgård, a Swedish supplier. The exception is Norway, Russia, Switzerland, and Poland, which use local suppliers to create the product.

IKEA affirmed today that meatballs sold in the U.S. were made with beef and pork only.

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