Abbvie & Shire
Abbvie has sweetened its offer to buy Shire. The Irish drug maker has rejected Abbvie’s past three offers. The new cash and stock proposal is worth $51 billion, $5 billion more than its last bid. Shire’s board has said that earlier takeover approaches significantly undervalued the company, but no comment yet on this latest one. Shares of Abbvie fell almost three percent to $55.69. Shire was down almost two percent to $232.92.
Cummins, the maker of diesel and natural gas engines announced plans to increase its dividend. It upped the payout by 25 percent to 78 cents a share. The board also authorized a stock buyback of up to $1 billion in shares after it completes its current $1 billion repurchase program. Despite that shares fell slightly to $155.96.
Elon Musk’s plans to expand in China might have hit a detour. The electric car maker faces a trademark infringement lawsuit in China. Tesla had announced a settlement of the case between the company and a Chinese businessman in January, but he’s now taking the automaker to court and demanding it stop all sales and marketing activity in the country. Shares were down more than 1.5 percent to $219.07.
Another dividend hike today, this one from KLA-Tencor. The chip maker increased its quarterly dividend by five cent to a 50 cents a share. It also announced a $1 billion stock buyback. Shares rose a fraction to $74.09.