Stocks to Watch: AVP, GRPN, AOL & More
Take a look at some of Monday’s morning movers:
Avon Products - Beauty products maker Coty is proposing to acquire Avon for $23.25 a share in cash, or about $10 billion. Coty says it's been unsuccessful in engaging Avon in takeover talks, but it does not intend to pursue a hostile bid.
Groupon - The online coupon provider is restating the results from its first quarter as a public company. An audit found that the company did not set aside enough money for customer refunds, which auditor Ernst & Young says constitutes a "material weakness" in internal controls. Following the revision, Bank of America/Merrill Lynch has reduced its rating on Groupon to "neutral" from "buy."
Express Scripts, Medco Health Solutions - The Federal Trade Commission has cleared the $29 billion dollar acquisition of Medco by Express Scripts after an eight-month investigation. The deal became official just moments after the announcement, a few days after several groups filed suit in an attempt to halt the combination.
AOL - The company has extended CEO Tim Armstrong’s contract through March 2016, at the same time that activist investor and major shareholder Starboard Value is mounting a campaign to win more seats on the board. Starboard has been critical of Armstrong’s strategy for the company.
U.S. Airways - Flight attendants have rejected a tentative labor agreement that had been struck early last week. The agreement would have been the first joint contract since U.S. Airways and America West merged in 2005.
GlaxoSmithKline - The drug company says study results show its new, once-daily HIV drug matches a Merck twice-a-day treatment in effectiveness.
Pinnacle Airlines - The regional airline is the latest carrier to file for Chapter 11 bankruptcy protection, as it succumbs to the pressures of high fuel prices and lower travel demand.
Global Payments - The company has been dropped by Visa as an approved payment processor, following a Friday data breach that exposed Visa, MasterCard, American Express, and Discover Financial Services account holders to possible fraud.
Diageo - Diageo has reportedly hired Goldman Sachs Group to negotiate terms for its planned bid for a stake in Mexican tequila brand Jose Cuervo. London’s Sunday Telegraph says that possible stake is valued at about $3 billion. Diageo is the current U.S. distributor of the brand.
DirecTV - U.S. customers of the satellite TV service have lost Tribune Co. TV stations, after a contract between the satellite TV provider and Tribune expired Sunday night. The two have been unable to reach agreement on renewal terms.
Apple - Consumer Reports has given Apple's new iPad the top rating in its ranking of tablet computers, despite saying two weeks ago that the iPad ran at hotter temperatures than its predecessors under certain conditions. The magazine is repeating its contention that the higher temperatures are not a cause for concern.
Sina - The Chinese Internet service provider may be under pressure after China suspended comments on Sina's microblogging service through Tuesday. Reports say the government has tightened censorship after false rumors of a coup attempt spread over the weekend.
Amazon.com - Bank of America/Merrill Lynch has cut its rating on Amazon to "neutral" from "buy," saying current Street earnings estimates for the online retailer are too high.
Questions? Comments? Email us at email@example.com