Among the companies with shares expected to actively trade in
Tuesday's session are AmerisourceBergen Corp. (ABC), Cardinal
Health Inc. (CAH) and Affymax Inc. (AFFY).
Walgreen Co. (WAG) and Alliance Boots GmbH agreed to get their
branded and generic pharmaceutical products from AmerisourceBergen
Corp. (ABC), in exchange for the two companies having the right to
buy a minority position in the drug wholesaler. The pact deals a
blow to Cardinal Health Inc. (CAH), which used to provide branded
drugs to Walgreen. The business is worth $28 billion in incremental
revenue to AmerisourceBergen in the coming fiscal year.
AmerisourceBergen CEO Steven Collis says it may be the largest
supply-chain contract in the industry's history. Shares of
AmerisourceBergen rose 6.6% to $51.50 in premarket trading and
Cardinal Health shares slumped 6.1% to $43.34.
Affymax Inc. (AFFY) said Monday it will cut its workforce by 75%
and is considering selling itself as the biotechnology company
focuses its resources on an investigation around its flagship
antianemia drug. Shares slid 57% to $1.26 premarket.
Lululemon Athletica Inc. (LULU, LLL.T) said it expects a
shortage of its popular black Luon yoga pants after some of them,
sold since the beginning of the month, were found to be overly
sheer. Shares fell 7.4% to $61.04 premarket, as the Canadian
company said its fiscal first-quarter same-store sales and revenue
would suffer as a result.
Electronic Arts Inc. (EA) said its Chief Executive John
Riccitiello is stepping down and also said its fourth-quarter
results could miss its earlier expectations. Investors seem to care
more about Mr. Riccitiello's departure than its weak guidance. That
is no huge shock, Pacific Crest analyst Evan Wilson said,
considering shareholders have blamed him for much of the video-game
maker's problems in recent years. Shares were up 1.8% at $19.05
premarket.
Crestwood Midstream Partners LP (CMLP) is offering 4.5 million
units representing limited-partner interests. The energy company
plans to pay down debt with the proceeds. Crestwood recently had
around 41.2 million units outstanding. Shares fell 4.5% to $23.72
premarket.
Hospitality Properties Trust (HPT) is offering 10 million
shares, expecting to use the proceeds to repay debt and for general
purposes. The real estate investment trust recently had 123.6
million shares outstanding. Shares fell 6.2% to $25.51 in premarket
trading.
Headphone maker Skullcandy Inc. (SKUL) has appointed Hoby
Darling, a Nike Inc. (NKE) digital executive, to the president and
chief executive posts. Shares climbed 6.2% to $5.66 premarket.
Watchlist:
AvalonBay Communities Inc. (AVB) said Chairman Bryce Blair has
decided to retire and won't stand for re-election at the
multifamily-housing real-estate investment trust's upcoming annual
stockholders meeting.
BlackRock Inc. (BLK), the world's largest money manager, said in
an internal memo that it was laying off about 3% of its workforce,
or about 300 people, as a result of a company restructuring.
Citigroup Inc. (C) has agreed to pay $730 million to settle a
class action brought on behalf of investors who were allegedly
misled by the bank's disclosures.
Federal Agricultural Mortgage Corp. (AGM, AGMA), commonly known
as Farmer Mac, posted a 27% drop in fourth-quarter earnings as
fair-value adjustments and a severance payment made to a former
executive hurt bottom-line results.
Hawaiian Electric Industries Inc. (HE) plans to offer up to 6.1
million shares as the utility owner seeks to raise funds to invest
in its businesses and to pay down debt. The company had around 97.9
million shares outstanding as of Dec. 31.
Hess Corp. (HES) has agreed to sell assets in the Eagle Ford
shale in south Texas for $265 million to Sanchez Energy Corp. (SN)
as it continues to whittle its operations.
Holly Energy Partners L.P. (HEP) plans to offer nearly 1.9
million units representing limited partner interests, intending to
use the proceeds in part to pay down debt. The gasoline-pipeline
operator recently had 56.8 million units outstanding.
LRR Energy L.P. (LRE) unveiled an offering of six million
shares, with half sold by the company and the other half sold by
its biggest shareholder, Lime Rock Resources. LRR Energy, which
recently had around 15.7 million units outstanding, plans to use
the proceeds of its portion of the offering to pay down debt.
Memorial Production Partners LP (MEMP) has agreed to acquire
oil- and gas-producing properties in East Texas and North Louisiana
from its sponsor, Memorial Resource Development LLC, for $200
million, a move that strengthens the company's core operating
areas.
Steel Dynamics Inc. (STLD) projected first-quarter earnings
below analyst estimates as the steel maker also said shipments are
expected to be fairly flat compared with the fourth quarter.
Two Harbors Investment Corp. (TWO) plans to offer 50 million
shares, as it aims to acquire more residential mortgage-backed
securities, loans and servicing rights. The real estate investment
trust recently had around 300.7 million shares outstanding.
Write to Mia Lamar at mia.lamar@dowjones.com
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