Streetinsider.com's Hot Lunchtime Reads 07/28: (RAD) (Z) (NFLX) (AAL) Jul 28, 2014 12:13PM

The following is a list of notable articles to help get you through the lunch hour:
  • Netflix (NFLX) Could Land the 'Show About Nothing' -> Read this!

  • Smith & Wesson (SWHC) to Pay $2M in Antibribery Case -> Read this!

  • Rite Aid (RAD) Pressured for Second Day after Greenlight Closes Position -> Read this!

  • Manhattan Bridge Capital (LOAN) Prices 1.75M Common Offering at $2.85/Share -> Read this!

  • Trulia (TRLA) Deal a Big Strategic Positive for Zillow (Z), RBC Says; Not Much Visitor Overlap -> Read this!

  • Goldman Remains Positive on Airlines (AAL) (DAL) (JBLU) (LUV) (UAL) -> Read this!

  • Aegis Cuts Semler Scientific (SMLR) to Hold; FloChec Penetration Rate Still 'Extremely Low' -> Read this!


Notable Analyst Rating Changes 07/28: (CPN) (XRX) (QRE) Upgraded; (MNST) (DSW) (PFE) Downgraded Jul 28, 2014 10:33AM

UPGRADES
Goldman Sachs adds Calpine Corporation (NYSE: CPN) to its Conviction Buy List with a price target of $27. Click Here for more color.

JPMorgan raises Xerox (NYSE: XRX) from Underweight to Neutral and moves its price target from $13 up to $14.

Wunderlich Securities boosts QR Energy (NYSE: QRE) from Hold to Buy with a price target of $24.50.

Brean Capital upgrades Pitney Bowes (NYSE: PBI) from Hold to Buy.

For daily real-time Upgrades go to http://www.streetinsider.com/Upgrades

DOWNGRADES
UBS downgrades Monster Beverage (Nasdaq: MNST) from Buy to Neutral.

Sterne Agee drops DSW Inc. (NYSE: DSW) from Neutral to Underperform with a price target of $23. Click Here for more color.

BMO Capital cuts Pfizer (NYSE: PFE) from Outperform to Market Perform and moves its price target from $34 down to $31. Click Here for more color.

Jefferies chops El Paso Electric Company (NYSE: EE) from Buy to Hold and eases its price target from $44 down to $39. Click Here for more color.

For daily real-time Downgrades go to http://www.streetinsider.com/downgrades

NEW COVERAGE
Gabelli starts TimkenSteel (NYSE: TMST) with a Hold rating.

Argus initiates Dollar General (NYSE: DG) with a Hold rating.

Keefe, Bruyette & Woods assumes Resource Capital Corp (NYSE: RSO) with a Market Perform rating and $5.50 price target.

Susquehanna begins Seventy Seven Energy (NYSE: SSE) with a Neutral rating and a price target of $26.

For daily real-time New Coverage go to http://www.streetinsider.com/New+Coverage

Visit our new Ratings Insider portal to get the most comprehensive and up-to-date analyst coverage on the Street.


Notable Mergers and Acquisitions of the Day 07/28: (DLTR)/(FDO) (Z)/(TRLA) (PCC)/(TSN) (ONB) Jul 28, 2014 10:12AM

* Dollar Tree, Inc. (Nasdaq: DLTR) and Family Dollar Stores, Inc. (NYSE: FDO) announced that they have entered into a definitive merger agreement under which Dollar Tree will acquire Family Dollar in a cash and stock transaction. The value of the consideration is $74.50 per share, a 22.8% premium over Family Dollar’s closing price as of July 25, 2014.

The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to close by early 2015, at which time the Family Dollar shareholders will receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares, subject to the collar described below. At closing, Family Dollar shareholders will own no less than 12.7% and no more than 15.1% of the outstanding common stock of Dollar Tree. Howard R. Levine and Trian Fund Management, L.P. and funds managed by it, which collectively own approximately 16% of the outstanding stock of Family Dollar, have entered into voting agreements in support of the merger.

“This is a transformational opportunity,” stated Bob Sasser, Dollar Tree’s Chief Executive Officer. “With the acquisition of Family Dollar Stores, Dollar Tree will become a leading discount retailer in North America, with over 13,000 stores in 48 states and five Canadian Provinces, sales of over $18 billion, and more than 145,000 associates on our team. We will continue to operate under the Dollar Tree, Deals, and Dollar Tree Canada brands, and when this transaction is complete, we will operate under the Family Dollar brand as well. Throughout our history, we have strived continuously to evolve and improve our business. This acquisition, which enhances our footprint and diversifies our company, will enable us to build on that progression, and importantly, positions Dollar Tree for accelerated growth. By offering both fixed-price and multi-price point formats and an even broader, more compelling merchandise assortment, we will be able to provide even greater value and choice to a wider array of customers.

Dollar Tree has a long record of consistent, profitable growth, strong financial performance, prudent capital management, and outstanding total shareholder returns. The acquisition of Family Dollar is consistent with our vision to be the leader in value retailing.”

Sasser added, “This acquisition will extend our reach to lower-income customers and strengthen and diversify our store footprint. We plan to leverage best practices across both organizations to deliver significant synergies, while we accelerate and augment Family Dollar’s recently introduced strategic initiatives. Combined, our growth potential is enhanced with improved opportunities to increase the productivity of the stores and to open more stores across multiple banners.”

“I have long admired the Family Dollar brand and its key position in the minds of the consumer,” said Sasser. “We are excited about the prospects for the combined company and the many opportunities that it will create for our associates, vendors, business partners, and shareholders. Howard Levine, CEO of Family Dollar, will remain with the company and report directly to me. Upon closing, Howard will become a member of the Dollar Tree Board of Directors. We are excited to welcome the Family Dollar team to Dollar Tree, and we look forward to working together to deliver increased value to the consumer and to our shareholders.”

Howard R. Levine, Chairman and CEO of Family Dollar, commented: “For more than 54 years, Family Dollar has provided value and convenience to customers. Dollar Tree also has a rich history of providing great value to customers, and together, as one company, we can provide more customers with even greater value and convenience. Today’s announcement represents the successful culmination of a comprehensive strategic review process that our Board of Directors, working with its financial and legal advisors, began this past winter. While this assessment of alternatives included consideration of a number of potential partners, we are pleased to conclude this process with the announcement of this compelling transaction with Dollar Tree, which our Board has unanimously determined to be in the best interests of our shareholders. This combination will enable Family Dollar to accelerate efforts to improve the business and will benefit our dedicated Team Members who will now be part of a larger, more diverse organization. I am excited about our future with Dollar Tree, and I look forward to working with the Dollar Tree team to complete the combination as quickly as possible to realize the compelling benefits for all our stakeholders.”

Transaction Details

Under the terms of the transaction, Family Dollar shareholders will receive $74.50 for each share they own, comprised of $59.60 in cash and $14.90 in Dollar Tree stock. The stock portion will be subject to a collar such that Family Dollar shareholders will receive 0.2484 Dollar Tree shares if the average Dollar Tree trading price during a specified period preceding closing is equal to or greater than $59.98 and 0.3036 Dollar Tree shares if this average trading price is less than or equal to $49.08. If the average trading price of Dollar Tree stock during this period is between $49.08 and $59.98, Family Dollar shareholders will receive a number of shares between 0.2484 and 0.3036 equal to $14.90 in value. The transaction values Family Dollar at an enterprise value of approximately $9.2 billion, and it represents an enterprise value to last twelve months May 31, 2014 EBITDA multiple of 11.3x.

Dollar Tree intends to finance the acquisition through a combination of existing cash on hand, bank debt and bonds. Following the transaction, Dollar Tree expects to continue to have a solid balance sheet supported by strong free cash flow of the combined business. In connection with the transaction, Dollar Tree has received a financing commitment from JPMorgan Chase Bank, N.A. with the bank debt syndication and bond offering expected to occur prior to closing.

The transaction is subject to Family Dollar stockholder approval, expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.

J.P. Morgan Securities LLC acted as exclusive financial advisor to the board of directors of Dollar Tree, and J.P. Morgan Chase Bank, N.A. committed to provide bridge financing for the transaction. Wachtell, Lipton, Rosen & Katz and Williams Mullen acted as legal counsel to Dollar Tree in connection with the transaction. Morgan Stanley & Co. LLC acted as exclusive financial advisor to the board of directors of Family Dollar in connection with the transaction. Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel to Family Dollar in connection with the transaction.

* Zillow (Nasdaq: Z) announced that it has entered into a definitive agreement to acquire Trulia, Inc. (NYSE: TRLA) for $3.5 billion in a stock-for-stock transaction. The Boards of Directors of both companies have approved the transaction, which is expected to close in 2015.

The combined company will maintain both the Zillow and Trulia consumer brands, offering buyers, sellers, homeowners and renters access to vital information about homes and real estate for free, and providing advertising and software solutions that help real estate professionals grow their business. At closing, Trulia CEO Pete Flint will remain as CEO of Trulia reporting to Zillow CEO, Spencer Rascoff, and will join the Board of Directors of the combined company. In addition, at closing, a second member of Trulia's Board of Directors will join the board of the combined company. Further operational and organizational details will be announced at closing.

"Consumers love using Zillow and Trulia to find vital information about homes and connect with the best local real estate professionals," Rascoff said. "Both companies have been enormously successful in creating compelling consumer brands and deep industry partnerships, but it's still early days in the world of real estate advertising on mobile and Web. This is a tremendous opportunity to combine our resources and achieve even more impressive innovation that will benefit consumers and the real estate industry."

"Trulia and Zillow have a shared mission and vision of empowering consumers while helping real estate agents, brokerages and franchisors benefit from technological innovation," said Flint. "By working together, we will be able to create even more value for home buyers, sellers, and renters, as well as create a robust marketing platform that will help our industry partners connect with potential clients and grow their businesses even more efficiently. Our two companies share complementary employee cultures with innovative, consumer-first philosophies and a deep commitment to create the best products and services for our industry partners."

Both Zillow and Trulia are primarily media companies, generating the majority of revenue through advertising sales to real estate professionals. Despite continued growth as public companies, significant opportunities of scale remain as the majority of advertising dollars in the real estate sector have yet to migrate online or to mobile. For example, the two companies' combined revenue currently represents less than 4 percent of the estimated $12 billion[i] real estate professionals spend on marketing their services to consumers each year.

Zillow and Trulia are two rapidly growing real estate sites on mobile and the Web, enabling advertisers to reach a large and expanding consumer base. In June, Zillow reported a record 83 million unique users across mobile and Web[ii]. For the same month, Trulia reported a record 54 million monthly unique users across its sites and mobile apps[iii]. The two brands have limited consumer overlap – approximately half of Trulia.com's monthly visitors do not visit Zillow.com, and approximately two-thirds of Zillow.com's monthly visitors across all devices do not use Trulia.com[iv]. Maintaining the two distinct consumer brands will allow the combined company to continue to offer differentiated products and user experiences, attract more users and maximize the distribution of free content across multiple platforms, apps and channels.

Transaction Details

As part of the agreement, Trulia shareholders will receive 0.444 shares of Class A Common Stock of Zillow, Inc.[v] for each share of Trulia, and will own approximately 33% of the combined company at closing. Current Zillow holders of Class A Common Stock and Class B Common Stock will receive one comparable share of the combined company at closing, and will represent approximately 67% of the combined company. The transaction assumes Trulia's convertible notes will be assumed by the combined company at closing. The value of the deal represents a premium of 25% to Trulia's closing price on July 25, 2014.

The agreement is subject to the satisfaction of customary closing conditions, including the expiration of U.S. antitrust waiting periods and shareholder approval of both companies. Zillow co-founders Rich Barton and Lloyd Frink, who control a majority of the shareholder voting power of Zillow, have agreed to vote in favor of the transaction. In addition, Trulia directors holding 7.4% of Trulia stock have entered into voting agreements with Zillow to vote in favor of the transaction.

Representation

Goldman, Sachs & Co. acted as the exclusive financial advisor, and Shearman & Sterling LLP and Perkins Coie LLP acted as legal counsel to Zillow. J.P. Morgan Securities LLC acted as a financial advisor, and Goodwin Procter LLP and Wilson Sonsini Goodrich & Rosati acted as legal counsel to Trulia. Qatalyst Partners LP also acted as a financial advisor to Trulia.

* Pilgrim's Pride (Nasdaq: PPC) announced that a definitive agreement has been entered to purchase the totality of the poultry businesses of Tyson Foods, Inc. (NYSE: TSN) in Mexico. Pilgrim's Pride, is majority owned by JBS USA Holdings, Inc., a wholly owned subsidiary of JBS S.A.

The transaction is valued at US$400 million and will be paid for in cash, pending regulatory approvals by the competent authorities. Pilgrim's Pride Mexico anticipates incremental annual revenue of approximately $650 million as a result of the transaction.

Tyson de México, a vertically integrated poultry business based in Gomez Palacio in North Central México, has operated for more than 20 years. The company includes three plants, seven distribution centers and employs more than 5,400 team members.

"Today's announcement demonstrates Pilgrim's continued commitment to our growth strategy of disciplined acquisitions that add company value for our shareholders and strengthen our strategic position in the market," said Bill Lovette, President and CEO of Pilgrim's Pride Corporation.

Once the sale is completed, PPC currently expects to maintain the operations working to capacity with the existing workforce, maintaining labor contracts in place in both countries.

* Old National Bancorp (Nasdaq: ONB) and Grand Rapids-based Founders Financial Corporation ("Founders"), jointly announced the execution of a definitive agreement under which Old National will acquire Founders through a stock and cash merger.

With nearly $466 million in total assets, $355 million in loans, and $378 million in deposits as of June 30, 2014, Founders is a bank holding company with Founders Bank & Trust as its wholly-owned subsidiary. Founded in 1991, and boasting 78 consecutive profitable quarters, Founders Bank & Trust operates four full-service banking centers in economically vibrant Kent County, home to Grand Rapids and several of Michigan's largest employers including Amway, Meijer, Spectrum Health and Steelcase.

Founded in Evansville, Indiana in 1834, with nearly $10.4 billion in total assets and 173 banking centers as of June 30, 2014, Old National, the parent company of Old National Bank, is the largest financial services holding company headquartered in Indiana. On a pro forma basis, including the acquisition of Ann Arbor-based United Bancorp, Inc. (Nasdaq: UBMI) scheduled to close on July 31, 2014, Old National Bank will have 36 branches and approximately $1.6 billion of deposits in the State of Michigan.

"This acquisition affirms Old National Bank's commitment to Southwestern Michigan by providing us with a strong and welcome presence in the state's second largest city," said Old National President & CEO Bob Jones. "Like Founders Bank & Trust, Old National Bank is focused on exceeding client expectations and strengthening the communities we serve. We look forward to continuing the legacy of service to both clients and community that has become the Founders trademark."

In celebration of this announcement, Old National and Founders announced their intention to collectively donate $15,000 to the Grand Rapids Community Foundation-Challenge Scholars. According to Laurie Beard, President & CEO of Founders Financial Corporation, this shared commitment to community is one of the primary drivers of the partnership.

"As a community-focused bank, we felt it was essential to choose a partner that not only shares our focus on highly personalized client service, but also our commitment to community engagement," said Beard. "I'm excited to say we have found such a partner in Old National, and we look forward to enhancing our commitment to the Grand Rapids market through the strength of this new combination."

Subject to the terms and conditions set forth in the merger agreement, which was unanimously approved by the boards of both companies, shareholders of Founders will receive 3.25 shares of Old National common stock and $38.00 in cash for each share of Founders stock. Based upon the July 25, 2014, closing price of $13.87 per share of Old National common stock, the transaction is valued at approximately $83.08 per share of Founders common stock, or approximately $88.2 million. The transaction value is likely to change due to fluctuations in the price of Old National common stock. The exchange ratio is also subject to adjustment under certain circumstances as provided in the merger agreement.

The merger is expected to close in the first half of 2015 and is subject to approval by Founders' shareholders, regulatory approvals and other customary closing conditions provided in the merger agreement. The merger agreement also provides that Founders Bank & Trust will be consolidated into Old National Bank.

Old National was advised by Sandler O'Neill + Partners L.P. and the law firm of Krieg DeVault LLP. Founders was advised by Donnelly Penman & Partners and the law firm of Warner Norcross & Judd LLP.

To keep up on all the Mergers & Acquisitions data in real-time, go to our M&A Insider page.


Pre-Open Stock Movers 7/28: (FDO) (XGTI) (TRLA) Higher; (ACRX) (HZNP) (Z) Lower (more...) Jul 28, 2014 09:30AM

AcelRx Pharmaceuticals, Inc. (Nasdaq: ACRX) 35.4% LOWER; announced that the U.S. Food and Drug Administration (FDA) has issued a Complete Response Letter (CRL) for the Company's new drug application (NDA) for Zalviso (sufentanil sublingual tablet system). The Company is currently reviewing the FDA's comments and requests contained in the CRL and plans to discuss these requests with the FDA.

Horizon Pharma (NASDAQ: HZNP) 26.7% LOWER; said it was verbally notified that in August 2014, two pharmacy benefit managers (PBMs), CVS Caremark (Caremark) and Express Scripts, Inc. (ESI), expect to announce DUEXIS® and VIMOVO® will no longer be on their formularies and will be placed on their exclusion lists effective January 1, 2015.

Family Dollar Stores, Inc. (NYSE: FDO) 23.3% HIGHER; Dollar Tree, Inc. (Nasdaq: DLTR) and Family Dollar Stores, Inc. (NYSE: FDO) announced that they have entered into a definitive merger agreement under which Dollar Tree will acquire Family Dollar in a cash and stock transaction. The value of the consideration is $74.50 per share, a 22.8% premium over Family Dollars closing price as of July 25, 2014.

xG Technology, Inc. (Nasdaq: XGTI) 18.8% HIGHER; announced that it has been awarded a subcontract by CACI International Inc (NYSE: CACI) to provide communications and network services on CACI's prime contract with the U.S. Army's Communications-Electronics Research, Development and Engineering Center (CERDEC) Space and Terrestrial Communications Directorate (S&TCD). The five-year (three base plus two options) multiple-award indefinite delivery/indefinite quantity (IDIQ) prime contract has a ceiling value of $497 million. With the award, which represents new work, xG Technology is positioned to expand its presence in its cognitive radio market area.

Trulia, Inc. (NYSE: TRLA) 13.1% HIGHER; Zillow (NASDAQ: Z) announced that it has entered into a definitive agreement to acquire Trulia, Inc. (NYSE: TRLA) for $3.5 billion in a stock-for-stock transaction. The Boards of Directors of both companies have approved the transaction, which is expected to close in 2015

Dollar Tree, Inc. (NASDAQ: DLTR) 10% HIGHER; Dollar Tree, Inc. (Nasdaq: DLTR) and Family Dollar Stores, Inc. (NYSE: FDO) announced that they have entered into a definitive merger agreement under which Dollar Tree will acquire Family Dollar in a cash and stock transaction. The value of the consideration is $74.50 per share, a 22.8% premium over Family Dollars closing price as of July 25, 2014.

El Pollo Loco (NASDAQ: LOCO) 8.2% HIGHER; Friday's hot IPO adds to gains.

Calpine Corporation (NYSE: CPN) 4.7% HIGHER; Goldman Sachs added to CL Buy List

Zillow (NASDAQ: Z) 4.3% LOWER; Zillow announced that it has entered into a definitive agreement to acquire Trulia, Inc. (NYSE: TRLA) for $3.5 billion in a stock-for-stock transaction. The Boards of Directors of both companies have approved the transaction, which is expected to close in 2015.

Sohu.com, Inc. (NASDAQ: SOHU) 4.2% LOWER; reported Q2 EPS of ($0.88), $0.49 better than the analyst estimate of ($1.37). Revenue for the quarter came in at $400 million versus the consensus estimate of $408.21 million.

Canadian Solar Inc. (NASDAQ: CSIQ) 3.8% LOWER; US Dept. of Commerce announced its preliminary determination on its anti-dumping investigation into imports of certain Chinese and Taiwanese solar products.

Dollar General (NYSE: DG) 3.7% LOWER; Rivals Dollar Tree and Family Dollar Stores to merge

Prosensa (NASDAQ: RNA) 3.5% HIGHER; ​Roth Capital upgraded from Neutral to Buy with a price target of $17.00 (from $12.00).

Dynegy (NYSE: DYN) 3.5% HIGHER; ​Goldman Sachs upgraded from Neutral to Buy with a price target of $35.00 (from $31.00) based on a SOTP

WellCare Health Plans (NYSE: WCG) 3.1% HIGHER; ​Goldman Sachs upgraded from Neutral to Buy with a price target of $80.00. Analyst Matthew Borsch sees earnings recovery potential and asset value.

First Solar (Nasdaq: FSLR) 2.7% HIGHER; First Solar and XSOL Co., Ltd. have signed an agreement to supply First Solars cadmium telluride (CdTe) thin film modules in Japan. The agreement targets installation of 100 megawatts (MW)DC per year.

SolarCity Corporation (NASDAQ: SCTY) 1.5% LOWER; US Dept. of Commerce announced its preliminary determination on its anti-dumping investigation into imports of certain Chinese and Taiwanese solar products.

PG&E Corporation (NYSE: PCG) 1% LOWER; ​Goldman Sachs downgraded from Neutral to Sell with a price target of $44.00 on regulatory risks and low capital allocation potential.

DSW Inc. (NYSE: DSW) 0.9% LOWER; ​Sterne Agee downgraded from Neutral to Underperform with a price target of $23.


Top 10 News for 07/21 - 07/25: In the Thick of Earnings; M&A Ramps Up; Where's the Homes? Jul 25, 2014 03:52PM

1. Tuesday night, Apple, Inc. (Nasdaq: AAPL) reported Q3 EPS of $1.28, $0.05 better than the analyst estimate of $1.23. Revenue for the quarter came in at $37.4 billion versus the consensus estimate of $37.99 billion. Apple sold 35.2 million iPhone units in the quarter versus consensus of about 34.0 to 34.5 million and 13.3 million iPad units, versus the consensus of about 14.3 million. Analysts were largely impressed with the results and shares saw subsequent gains.

2. Tech leaders Facebook (Nasdaq: FB) and Amazon.com (Nasdaq: AMZN) posted mixed results:

  • Facebook reported Q2 EPS of $0.42, $0.10 better than the analyst estimate of $0.32. Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.8 billion. Mobile DAUs were 654 million on average for June 2014, an increase of 39% year-over-year. Mobile advertising revenue represented approximately 62% of advertising revenue for the second quarter of 2014, up from approximately 41% of advertising revenue in the second quarter of 2013.

  • Amazon.com reported Q2 EPS of ($0.24), $0.09 worse than the analyst estimate of ($0.15). Revenue for the quarter came in at $19.34 billion, versus the consensus estimate of $19.32 billion. The company said it expects Q3 2014 revenue of $19.7 to $21.5 billion, versus the consensus of $20.8 billion.
3. Auto giants Ford (NYSE: F) and General Motors (NYSE: GM) also offered-up quarterly results:
  • Ford Motor Co. (NYSE: F) reported Q2 EPS of $0.40, versus the analyst estimate of $0.38. Revenue for the quarter came in at $37.4 billion versus the consensus estimate of $38.13 billion. Pressure on the quarter came largely from the changeover to the new F-150 line. The company said All Automotive business units contributed to the company’s pre-tax profit and all improved from a year ago, except South America.

  • General Motors (NYSE: GM) reported Q2 EPS of $0.58, in-line with the analyst estimate of $0.58. Revenue for the quarter came in at $39.6 billion versus the consensus estimate of $40.63 billion.
4. Privately-owned housing starts in June were at a seasonally adjusted annual rate of 893,000, missing consensus expectations calling for starts of 1.02 million. The U.S. Census Bureau and the Department of Housing and Urban Development said it was 9.3 percent (±10.3%)* below the revised May estimate of 985,000, but is 7.5 percent (±14.4%)* above the June 2013 rate of 831,000. Click here for more color.

5. On Tuesday, CIT Group (NYSE: CIT) said it entered into a definitive agreement and plan of merger with IMB Holdco LLC, the parent company of OneWest Bank N.A. (“OneWest Bank”), for $3.4 billion in cash and stock. Under the terms of the Agreement, IMB Holdco LLC shareholders will receive $2.0 billion in cash and 31.3 million shares of CIT Group Inc. common stock currently valued at $1.4 billion assuming a CIT stock price of $44.33.

6. The WSJ said Sunday night that activist investor Elliott Management has taken a more than $1 billion stake in EMC Corp. (NYSE: EMC) and wants the company to break itself apart. Elliott Management's new stake amounts to 2 percent of the shares outstanding, which is below the 5 percent threshold that would require the filing of a 13D. The stake makes Elliott Management the fifth-largest holder. The activist firm is seeking to convince EMC that spinning-off its roughly 80 percent stake in VMware (NYSE: VMW) would give the stock a substantial boost.

7. As fighting escalated in the region, the FAA halted flights to Israel and extended those restrictions through Wednesday. Shares that saw a little activity on the news included United Airlines (NYSE: UAL), American Airlines (Nasdaq: AAL), and Delta Air (NYSE: DAL), among others. For more on the restrictions, click here.

8. Thursday morning, BreitBurn Energy Partners, L.P. (Nasdaq: BBEP) and QR Energy, LP (NYSE: QRE) announced the signing of a definitive merger agreement pursuant to which Breitburn will acquire QR Energy in a unit-for-unit exchange implying a transaction value of approximately $3.0 billion, including QR Energy’s existing net debt and outstanding Class C Convertible Preferred Units. Under the terms of the merger agreement, holders of QR Energy’s Common and Class B units, including those issuable upon a change in control, will receive approximately 72 million Breitburn common units, or 0.9856 of a BBEP unit for each unit of QRE held. The consideration to be received by QR Energy unitholders is valued at $22.48 per unit, based on Breitburn’s closing price of $22.81 on July 23, 2014, representing a 19% premium to QRE’s closing price of $18.87 on July 23, 2014. The transaction is expected to be tax-free to QR Energy’s unitholders other than the holders of QR Energy Class C Convertible Preferred Units who will receive an aggregate of $350 million cash at closing.

9. Puma Biotechnology, Inc. (NYSE: PBYI) ripped higher earlier this week after the company announced positive top line results from the Phase III clinical trial of Puma's investigational drug PB272 (neratinib) for the extended adjuvant treatment of breast cancer (ExteNET Trial). The ExteNET trial is a double-blind, placebo-controlled, Phase III trial of neratinib versus placebo after adjuvant treatment with trastuzumab (Herceptin) in women with early stage HER2-positive breast cancer. In addition to the statistically significant results, the company announced an amendment to its licensing agreement with Pfizer for PB272 (neratinib).

10. Speculative M&A was active this week. Rumored deals include:


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Jul 23, 2014 12:38PM Unusual 11 Mid-Day Movers 07/23: (PBYI) (DRL) (NQ) Higher; (UIS) (XLNX) (NETE) Lower
Jul 23, 2014 12:12PM Streetinsider.com's Hot Lunchtime Reads 07/23: (PLUG) (MSFT) (TLM) (QCOM)
Jul 23, 2014 10:30AM Notable Analyst Rating Changes 07/23: (MSFT) (QCOM) (FANG) Upgraded; (MCD) (RTN) (LXK) Downgraded
Jul 23, 2014 10:00AM Notable Mergers and Acquisitions of the Day 07/23: (JNPR) (FNRG) (BX) (LNKD)
Jul 23, 2014 09:23AM Pre-Open Stock Movers 7/23 (PBYI) (ISRG) (BIIB) Higher; (XNLX) (MEET) (XOOM) Lower (more...)
Jul 22, 2014 06:06PM After-Hours Stock Movers 7/22: (PBYI) (TLM) (ISRG) Higher; (XOOM) (XLNX) (AAPL) Lower (more...)
Jul 22, 2014 05:20PM Market Wrap: CPI Gains 0.3% in June; Another Ack-Attack on Herbalife; Apple Bruised on Q2 Phone Sales
Jul 22, 2014 03:08PM Trading Radar for 07/23: Facebook (FB), Pepsi (PEP), AT&T (T), Dow (DOW), Qualcomm (QCOM), Boeing (BA) Report
Jul 22, 2014 02:36PM Notable 52-Week Highs and Lows of the Day 07/22: (GRH) (APA) (GLUU) High; (EDU) (SILC) (FMER) Low
Jul 22, 2014 12:50PM Unusual 11 Mid-Day Movers 07/22: (NETE) (OPTT) (HSTM) Higher; (NEWL) (SILC) (MELA) Lower
Jul 22, 2014 12:03PM Streetinsider.com's Hot Lunchtime Reads 07/22: (HLF) (GLUU) (ADXS) (NETE)
Jul 22, 2014 11:02AM Notable Analyst Rating Changes 07/22: (AGN) (RLGY) (FANG) Upgraded; (AMZN) (STI) (MTDR) Downgraded
Jul 22, 2014 10:15AM Notable Mergers and Acquisitions of the Day 07/22: (CIT) (YHOO) (CATM)
Jul 22, 2014 09:29AM Pre-Open Stock Movers 7/22: (SANM) (CMG) (CIT) Higher; (SILC) (RMBS) (KO) Lower (more...)
Jul 21, 2014 06:04PM After-Hours Stock Movers 7/21: (SANM) (CMG) (APA) Higher; (TEP) (RMBS) (TXN) Lower (more...)
Jul 21, 2014 03:37PM Trading Radar for 07/22: Altria Group (MO), Coca-Cola (KO), McDonalds (MCD), Apple (AAPL), Microsoft (MSFT) Report
Jul 21, 2014 02:58PM Notable 52-Week Highs and Lows of the Day 07/21: (TWX) (RFMD) (ZINC) High; (BTU) (WWW) (GNC) Low
Jul 21, 2014 01:39PM Unusual 11 Mid-Day Movers 07/21: (RGDO) (EXTR) (PLUG) Higher; (EZPW) (ITRI) (ICLD) (More...)
Jul 21, 2014 12:42PM Streetinsider.com's Hot Lunchtime Reads 07/21: (EMC) (AAPL) (FB) (KORS) (AKS) (STLD) (X)
Jul 21, 2014 12:09PM Notable Mergers and Acquisitions of the Day 07/21: (AKS) (STLD) (CBSO)
Jul 21, 2014 11:58AM Notable Analyst Rating Changes 7/21: (JPM) (IMAX) (BIDU) Upgraded; (MNST) (ITRI) (RH) Downgraded (more...)
Jul 21, 2014 09:27AM Pre-Open Stock Movers 7/21: (EXTR) (EMC) (ZINC) Higher; (PETS) (ICLD) (BBT) Lower (more...)
Jul 18, 2014 03:49PM Top 10 News for 07/14 - 07/18: Merger Madness!; Microsoft Slashes Staff; Tragic Plane Crash Stuns Markets
Jul 18, 2014 02:37PM Trading Radar for 07/21: Halliburton (HAL), Netflix (NFLX), Chipotle Mexican Grill (CMG), TI (TXN), Rambus (RMBS) Report
Jul 18, 2014 02:32PM Notable 52-Week Highs and Lows of the Day 07/18: (SWKS) (BK) (RFMD) High; (NUS) (IVAN) Low
Jul 18, 2014 01:07PM Unusual 11 Mid-Day Movers 07/18: (ZHNE) (ADGE) (BIOF) Higher; (RP) (AMD) (KEG) Lower
Jul 18, 2014 12:08PM Streetinsider.com's Hot Lunchtime Reads 07/18: (NQ) (NFLX) (AMD) (XOM) (RNN)
Jul 18, 2014 10:28AM Notable Analyst Rating Changes 07/18: (BC) (AMH) (PLXS) Upgraded; (RP) (AMD) (NUS) Downgraded
Jul 18, 2014 10:11AM Notable Mergers and Acquisitions of the Day 07/18: (GTIV) (ABBV)/(SHPG) (TWTR) (RDNT)
Jul 18, 2014 09:22AM Pre-Open Stock Movers 7/18: (ICLD) (GTIV) (SWKS) (GOOG) Higher; (RP) (NQ) (AMD) Lower (more...)
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