The SEC has frozen the the accounts of several traders who made more than $3.6 million in profits by trading stocks and call before the $3.3bn takeover of Fortress Investment Group was announced by Japan’s SoftBank. The unknown traders placed the “highly suspicious” orders for shares and contracts for difference, or CFDs, through Maybank Securities and R.J. O’Brien, according to the SEC.
Wal-Mart Stores is running a "price-comparison" test in at least 1,200 U.S. stores in a bid to close a pricing gap with its rivals by cutting prices on key goods, while at the same time demanding that its vendors lower their costs, in a move that is likely to send a deflationary shock across the entire retail universe.
Despite US markets being closed in observance of Washington's birthday, S&P futures spiked during overnight trading, reaching new all time highs before fading some of the gains. Both Asian and European markets traded modestly higher after paring early gains.
Kraft Heinz has withdrawn its $143 billion offer for Unilever just two days after the bid became public and was promptly rejected by the Anglo-Dutch target. The proposed deal would have been the largest-ever takeover in the food or beverage industry, and would have created a company with combined sales second only to Swiss giant Nestle.
Unilever shares soared this morning after food conglomerate Kraft-Heinz, backed by Warren Buffett and Brazil's 3G, confirmed it made a £112bn takeover offer for Unilever, leading to a 11% surge in the shares of the London-listed Anglo-Dutch conglomerate, the biggest one day surge since 1987. Shares of Kraft Heinz rose over 4% premarket in New York.
Concluding weeks of speculation, overnight Johnson & Johnson announced it agreed to acquire Actelion Pharmaceuticals, Europe’s biggest biotech company, for $30 billion, or CHF280 per share, expanding the U.S. pharma giant’s portfolio of rare-disease treatments as its top-selling drug faces new competition.
"The price-action in single-stock was the stuff we haven’t seen since the Q1 market-neutral factor unwinds ripping through the pod-shops…where for a stretch in late Jan / early Feb, teams / books were being blown-out on daily basis around the Street."
Asian stocks, S&P futures and European shares trade flat as a tightening race for the U.S. presidency spurs demand for haven assets including the yen while weighing on stocks and Mexico’s peso. A turbulent overnight session saw some early risk off following the plunge in Facebook shares and the Fox News report that an FBI probe into the Clinton foundation may lead to a "likely indictment."
Asian shares traded mixed, European shares slid while US equity futures posted a modest rebound after Friday's surprising political news that the FBI reopened its probe into Hillary Clinton, after OPEC failed to agree supply cuts at a meeting in Vienna.