International Rectifier & Infineon Technologies
Germany’s Infineon Technologies is buying U.S. based International Rectifier for $3 billion, which sent its shares way up in today’s session. International Rectifier makes chips for satellites, cars and aircraft, among other things. The merger is expected to be completed by early next year, as long as regulators approve the combo. Shares soared on the news, up 47 percent to $39.10.
A billion-dollar forecasting error has cost two top executives their jobs at Walgreen, according to the Wall Street Journal. The chief financial officer, Wade Miquelon, reportedly made a $1 billion forecasting error in the company’s medicare-related business. Shares were off slightly at $62.
Profit and sales declined at Staples as the company has faced more competition from online office supplies sellers. It is working to close some of its stores and beef up its presence online. But that turnaround won’t help the retailer right away, it warned that sales might decline in the current quarter as it sells fewer computers and basic office supplies. Shares fell 2.5 percent to $11.32.
JM Smucker also reported disappointing earnings. The Folgers coffee maker missed on the top and bottom lines and its lowered its sales outlook. The food company said promotions took a bite out of its coffee profits. Shares fell one percent to $102.42.
Madison Square Garden
Madison Square Garden had mixed quarterly results. Fourth quarter profit fell as the company was hurt by higher operating expenses. But revenue climbed, beating estimates on growth in its entertainment and sports segments. Shares popped about 3.5 percent to $65.
Buyout buzz sent shares of Shutterfly higher today. The online photo sharing services provider rose after reports that Silver Lake Partners and Bain Capital are among the firms interested in buying the company. Another report says private equity firm Hellman and Friedman will make an offer to buy the company this week. That sent the stock one percent higher to $50.47.