Bank of New York Mellon
Shares of the Bank of New York Mellon jumped on news Nelson Peltz’s hedge fund has taken a stake in the company. The nearly 2.5 percent position is valued at just over $1 billion. The move could lead to a shakeup at the bank, as its stock performance has been lagging and its operating expenses have been higher. The stock was up nearly 3.5 percent to $37.48.
Devon & Linn Energy
Linn Energy saw its shares rise after news the oil and natural gas company will buy assets from Devon Energy for more than $2 billion. Devon will sell its non-core gas-rich properties in numerous states in an effort to focus on its more lucrative oil assets and cut down debt. That sent shares of Linn Energy up more than one percent to $32.35. Shares of Devon Energy fell a fraction to $79.40.
Treehouse Foods & Flagstone Foods
Treehouse Foods is buying Flagstone Foods, a private-label healthy snack maker for $860 million. Flagstone makes trail mix and dried fruit and Treehouse says the acquisition will raise its annual revenue by $750 million in the first year after the deal is closed. Shares of Treehouse were up a fraction to $80.07.
Investors got a chance to react today to news that the FDA approved a new diabetes treatment. Regulators gave the thumbs up to MannKind’s inhalable insulin. It has been three years since the FDA first asked for additional studies on the drug’s effects. MannKind’s stock popped more than 9.5 percent to $10.96.
A recent study conducted by Facebook has some people outraged. The social media giant admits it secretly manipulated some of its users’ news feeds to see how emotions can be spread on social media. The company argues that users consented to participate when they agreed to its terms of service. Still, the Facebook researcher who led the study posted a public apology on his page. Today, shares of Facebook fell slightly to $67.29.
Private Equity Firm Blackstone is ramping up its footprint in the hedge fund business. According to reports, the company will fund several teams of traders to place a small number of big, but risky bets, at a time when many hedge funds are shying away from these types of wagers. This multi-strategy hedge fund will be pitched to wealthy clients. Shares of Blackstone were down slightly to $33.44.