Forest Labs announced a plan to cut half a billion dollars in costs by 2016 and buyback more stock. The drug maker said it will downsize its staff to save money and buyback at least $400 million in stock to boost shareholder returns. Forest, which is facing patent expiration on its big drugs, will also buy the rights to a Schizophrenia treatment from Merck. The stock surged almost 10% to $56.32.
Hedge fund Starboard Value is taking aim at Triquint Semiconductor. The firm holds one of the largest stakes in the chip aker and it now demanding that the company make changes because the stock is deeply undervalued. In the letter to the company, Starboard also suggested nominating a new board of directors. Shares fell a fraction to $7.86.
Talisman Energy added two directors to its board backed by billionaire investor Carl Icahn. Icahn also upped his stake in the Canadian oil and gas company, he now owns nearly 7.5%. Shares climbed more than 3% to $12.20.
Dow Chemical says it will sell or spin off parts of its commodities chemical business. The move would mean unloading about 40 manufacturing plants. The businesses generate about $5 billion a year and the changes will affect almost 2 thousand workers. Dow said it expects the revamp to go through within the next two years. Dow jumped more than 2% to almost $40 a share.
3M was the biggest loser in the Dow today after the stock was downgraded by Morgan Stanley. The company’s rating was dropped from equal weight to underweight. Morgan Stanley said it liked the post-it maker, but just not as much as some of its peers. Share plummeted more than 4% to $127.68.
Comcast is testing technology that puts new commercials into old TV shows. The development could help networks generate more ad revenue off of old shows that viewers watch after the release date. Comcast is the parent of CNBC, which produces Nightly Business Report. Shares of the cable operator were down 1.5% to $49.12.
The provider of in-flight internet service, Gogo, received the gogo ahead to install its satellite technology on Boeings 747-400 aircraft. It plans to offer internet access on that plane by the first quarter of 2014. The news sent shares flying up almost 17.5% to $31.31.
Investors soured on shares of Krispy Kreme ahead of the company’s earnings report. Then, when the report came out, they sold off even more. The problem wasn’t so much the profits, they met analysts’ estimates. The company’s forecast for the upcoming fiscal year wasn’t as light and fluffy as investors hoped. Shares initially dropped sharply after-hours. The stock ended the regular session down more than 3% to $24.55.