Among the companies with shares expected to actively trade in
Wednesday's session are Smithfield Foods Inc. (SFD), Wet Seal Inc.
(WTSL) and Guidewire Software Inc. (GWRE).
Smithfield confirmed that it has agreed to be acquired by
Chinese meat producer Shuanghui International Holdings Ltd. for
about $4.7 billion. Shuanghui agreed to pay $34 a share for
Smithfield, a 31% premium over Tuesday's close of $25.97. The deal
is expected to close in the second half of the year. Smithfield's
shares jumped 26% to $32.75 premarket.
Wet Seal swung to a first-quarter profit as the women's apparel
retailer recorded improved margins and lower expenses. Shares
jumped 8.4% to $4.88 premarket as the company also offered upbeat
guidance for the second quarter.
Guidewire swung to a fiscal third-quarter loss as the provider
of software for property and casualty insurers posted higher
expenses that offset stronger revenue. However, shares rose 7.4% to
$43.80 premarket as results topped the company's prior
estimates.
Funeral home and cemetery owner Service Corp. International
(SCI) has agreed to buy smaller peer Stewart Enterprises Inc.
(STEI) for about $1.1 billion in cash to expand its footprint in
what it called a fragmented funeral and cemetery industry in North
America. Service Corp. will pay a per-share price of $13.25 for
Stewart, representing a 36% premium over Tuesday's close. Stewart's
class A shares leapt 34% to $13.02 in premarket trading, while
Service Corp.'s shares rose 6.7% to $18.80.
Cyberonics Inc. (CYBX) said the Centers of Medicare and Medicaid
Services has declined the medical-device maker's request to
reconsider the coverage of its implantable device used to treat
depression. Shares slid 7.7% to $44.09 premarket.
Movado Group Inc.'s (MOV) fiscal first-quarter profit improved
24% as the maker of luxury watches boosted its revenue and
benefited from an asset sale, though input costs rose sharply.
Shares rose 7.4% to $36.95 premarket as the company backed its
full-year guidance.
Trina Solar Ltd. (TSL, K3KD.SG) sharply widened its
first-quarter loss as the Chinese solar-products maker again
reported a double-digit percentage drop in revenue while margins
continued to narrow. American depositary shares slid 12% to $6.00
in premarket trading as results markedly missed Wall Street
estimates.
Chico's FAS Inc. (CHS) fiscal first-quarter earnings slipped
4.7%, missing Street views, as the seller of women's apparel
reported flat same-store sales while margins narrowed. Shares
dropped 6.7% to $18.04 premarket.
Associated Estates Realty Corp. (AEC) said it has commenced an
offering of about 6.5 million shares on a forward basis. The REIT
had 50.4 million shares outstanding as of April 26. Shares slipped
3.2% to $17.40 premarket.
Biopharmaceutical company RedHill Biopharma Ltd. (RDHL, RDHL.TV)
reported that it recently concluded a positive Type B meeting with
the U.S. Food and Drug Administration regarding its cardio drug
RHB-101 for the treatment of congestive heart failure and
hypertension. Following the positive meeting, the company said it
plans to submit a new drug application seeking marketing approval
of RHB-101 in the U.S. American depositary shares rose 7.4% to
$11.81 premarket.
Inland Real Estate Corp. (IRC) said it intends to offer 9
million shares to raise funds to pay down debt. The company had
90.4 million shares outstanding as of May 9. Shares were down 2.9%
to $10.82 premarket.
Watchlist:
Achillion Pharmaceuticals Inc. (ACHN) said Michael D. Kishbauch
is retiring as chief executive and president, and named the
company's chief scientific officer to succeed him.
Astronics Corp. (ATRO) has agreed to acquire Peco Inc. for about
$136 million in cash, expanding the company's offerings for the
aerospace industry.
Cerner Corp.'s (CERN) board has approved a 2-for-1 stock split,
a move that comes as shares of the hospital-information technology
vendor have increased 23% so far this year.
Health Management Associates Inc.'s (HMA) board said Gary D.
Newsome will retire as president and chief executive and a search
has begun for a replacement.
Standard & Poor's Ratings Services lowered its ratings on
Ingersoll-Rand PLC (IR) one notch closer to junk territory, citing
the company's planned spinoff of its profitable security
businesses.
Perfect World Co.'s (PWRD) first-quarter earnings fell 38% as
the Chinese online-game developer didn't introduce any major new
game in the period and revenue declined. However, results beat
expectations and the company's second-quarter revenue outlook
topped analysts' estimates.
Student loan company Sallie Mae (SLM) on Wednesday unveiled a
plan to split itself into two companies and also named Chief
Operating Officer John F. Remondi as its new chief executive,
effective immediately.
Moody's Investors Service has lifted Terex Corp.'s (TEX) rating
a notch, noting the construction-machinery maker's improving
performance.
United Natural Foods Inc.'s (UNFI) fiscal third-quarter earnings
rose 8.9%, as the specialty-food distributor continued to benefit
from strong demand for natural and organic foods. United Natural
also raised its full-year sales guidance.
Vipshop Holdings Ltd. (VIPS) defended its business model and its
methods for counting customers, responding to allegations that it
has overstated its growth.
Wal-Mart Stores Inc. (WMT) pleaded guilty Tuesday to federal
charges it illegally dumped hazardous waste, including pesticide,
fertilizer and paint, into local trash bins and sewer systems in
California and Missouri.
Write to Anna Prior at anna.prior@dowjones.com
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