With the stock market losing ground on the back of expectations of a possible interest rate hike by the Fed next month, fueled by strong non-farm payroll and unemployment data. However, ahead of a new trading week, several stocks are making moves based on some particular developments, such as earnings or Mergers & Acquisitions-related news. Therefore, on Monday morning, Apache Corporation (NYSE:APA), Plum Creek Timber Co. Inc. (NYSE:PCL), Weyerhaeuser Co (NYSE:WY), Perrigo Company plc Ordinary Shares (NYSE:PRGO), and Mylan NV (NASDAQ: MYL) are in the spotlight on the back of some M&A activity. Let’s take a closer look.
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Apache Corporation (NYSE:APA) has jumped by nearly 10% after Bloomberg reported that the company had been approached by an unidentified buyer regarding a takeover. Apache Corporation (NYSE:APA), an $18 billion independent energy company, declined the offer, according to the source, citing people familiar with the matter. The company hired Goldman Sachs to examine a defense strategy and it is not certain whether or not further negotiations will take place. Amid a slump in oil prices, Apache’s stock is down by over 31% in the last 52 weeks and has witnessed a decline of the smart money sentiment. Among over 730 funds that we track, a total of 32 held around 6% of the company’s outstanding stock at the end of June, down from 37 a quarter earlier. However, in the third quarter, Richard S. Pzena‘s Pzena Investment Management added 1.33 million shares to its stake in Apache Corporation (NYSE:APA), taking it to 1.89 million shares.
Next in line are two companies, Plum Creek Timber Co. Inc. (NYSE:PCL) and Weyerhaeuser Co (NYSE:WY), which earlier today announced signing a definitive merger agreement. Weyerhaeuser will acquire Plum Creek, offering 1.60 shares for each share of Plum Creek. After the deal is closed, shareholders of Weyerhaeuser will hold around 65% of the combined company’s common stock, with Plum Creek Timber Co. Inc. (NYSE:PCL) shareholders, owning the other 35%. On the back of the news, Plum Creek’s stock has jumped by over 15%, while, shares of Weyerhaeuser are trading around 4.5% lower. Among the funds from our database, 14 investors held around 8% of Plum Creek Timber Co. Inc. (NYSE:PCL), while 29 funds reported holding some 7% of Weyerhaeuser Co (NYSE:WY)’s shares at the end of June.