Spotlight Stocks: Bunge, Citigroup, Costco, Republic Services
Monday's top stories and stocks with potential to move.
Stocks to watch for Monday, June 23, 2008:
- Bunge (BG) has agreed to acquire Corn Products International (CPO) for $4.4 billion in stock. BG would become a major player in the market for finished corn products like starches and sweeteners, which is expected to grow 5% annually, reported The Wall Street Journal. The deal, valued at about $56 a share, represents a 31% premium to Corn Products' closing share price of $42.90 on Friday and a 25% premium to the stock's average price over the last 20 trading days.
- Citigroup (C) is expected to take billions more in write-downs in the 2Q. The company also announced it will cut thousands of investment-banking jobs this week as part of an overall 65,000 employee cut which will reduce its workforce by 10%, reported the WSJ.
- Costco (COST) is opening its first large-format store in Australia in an effort to break into a market that has been dominated by a supermarket duopoly, reported Reuters. Costco's Australian country manager Patrick Noone said it has planned a 13,800 square meter store in Melbourne. The store will open next year and will sell its typical wide range of goods.
- Republic Services (RSG) said it will purchase fellow disposal company Allied Waste (AW) for $6.07 billion in stock. RSG and AW are the second and third largest disposal companies in the US. RSG will pay AW shareholders 0.45 worth of a Republic share for each share held, valued at $14.04 per share based on Republic's Friday closing stock price of $31.19.
- Asian trading closed in the red with the Hang Seng -0.13%, Nikkei -0.61%, Sensex -1.91%, Taiwan -0.33% and Shanghai -2.52%.
- Europe is skewed to the upside with the CAC +0.24%, DAX +0.51%, FTSE +0.71%, ATX +0.18%, Swiss Mkt. -0.09% and Stockholm -1.27%.
- In commodities, crude oil is higher +0.98 to 136.34 and gold is also up +2.1 to 903.4 this morning.
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