Another activist investor is putting pressure on Darden to break up its restaurants. Just last week Darden announced its planning to spin off or sell its Red Lobster chain amid pressure from investor Barington Capital. Now, Starboard Value is turning up the heat on the restaurant operator, saying that a more dramatic breakup is needed. Shares popped on that on that news, up more than 6% to $54.35.
Jos. A Bank & Men’s Wearhouse
The suit saga continues… Jos A. Bank rejected Men’s Wearhouse’s takeover bid. Bank originally tried to takeover its larger rival, Men’s Wearhouse, but the offer was rejected. Now, Banks is turning down the turnaround offer because it feels the $1.5 billion bid is too low. Both of the apparel makers ended the day lower. Jos. A. Bank was down more than 1% to $59.29, while Men’s Wearhouse shares were off slightly to $51.63.
Tiffany & Co
Tiffany & Co has been ordered to pay Swatch almost $450 million in damages. A court ruled that Tiffany terminated a joint watch venture with Swatch before its expiration. As a result, Tiffany had to slash its outlook for the year. That sent shares of the jeweler down slightly to $90.50.
Seagate & Xyratex
Seagate Technologies is buying a data storage company called Xyratex for $374 million. The move is an effort by Seagate to expand its storage business and improve its supply chain. The deal sent shares of Seagate up a fraction to $56.01. Xyratex surged up 27% to $13.28.
Federal regulators are now allowing Ariad Pharmaceuticals to resume marketing for its Lukemia drug, but to a smaller population of patients. The drug maker suspended sales of the treatment 2 months ago after data showed more than 25% of patients suffered serious complications. Shares rose sharply, up almost 9% to $7.
A different diagnosis for another drug maker, Tesaro’s stock plunged today on news of weak test results from a nausea drug. The treatment is used to help patients suffering from nausea after chemotherapy, but the drug did little to help them recover. The stock fell almost 25% to $28.37.
A completely different story for United Therapeutics. The company received approval from the FDA to market its new hypertension treatment. That sent shares soaring up over 30% to $114.51.