It’s a merger Monday for Allergan plc (NYSE:AGN), Diebold Inc. (NYSE:DBD) and Pfizer Inc. (NYSE:PFE), while Lions Gate Entertainment Corp. (NYSE:LGF) begins the week on a sour note after disappointing returns from Katniss Everdeen’s big screen finale in Hunger Games: Mockingjay Part 2. Meanwhile, Chipotle Mexican Grill Inc. (NYSE:CMG) continues to redeem itself after an E. coli outbreak at its Washington and Oregon stores. Let’s dig into the details of these developments below.
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Drugmaker Pfizer Inc. (NYSE:PFE) is lagging by 2.02% in early afternoon trading today, while Allergan plc (NYSE:AGN) has fallen by 2.17%, following the announcement of their $160 billion merger (including debt) that is expected to rake in over $25 billion in annual operating cash flow beginning in 2018. Under the terms of the deal, an 11.3-for-one share split will be executed so that each Allergan shareholder will receive 11.3 shares of the combined company for each Allergan share, while Pfizer stockholders will receive one share of the combined company for each of their Pfizer shares. The combined company will be renamed “Pfizer plc”.
After the deal closes, New York-based Pfizer is expected to take advantage of the lower tax rate of between 17% and 18% in Ireland by moving its principal executive offices there, but keeping its New York headquarters. What is bothering investors of late is Pfizer’s impending move that will separate the combined company’s “innovative” and “established” drugs by no later than 2018. The deal is expected to close in 2016.
Out of 730 funds in our database, 151 held shares in Allergan amounting to 19.10% of its shares as of September 30. Healthinvest Partners Ab holds 761,000 shares in Pfizer valued at $23.9 million.
Diebold Inc. (NYSE:DBD) has withdrwawn by 5.25% after it announced a merger with German corporation Wincor Nixdorf Aktiengesellschaft, under which Diebold will offer Wincor Nixdorf shareholders €38.98 ($41.38) in cash, plus 0.434 Diebold common shares per Wincor Nixdorf share. The deal, which is valued at approximately $1.8 billion, or €1.7 billion (including net debt), will see the combined companies operate under the name “Diebold Nixdorf”.
“Our new company will be well positioned for growth in high-value services and software – particularly in the areas of managed services, branch automation, mobile and omnichannel solutions — across a broader customer base,” Diebold President and CEO Andy Mattes said.
Diebold Inc.(NYSE:DBD) provides self-service delivery, value-added services and software primarily to the financial industry, while Wincor Nixdorf AG (FWB:WIN) provides IT solutions and services to banks and the retail industry. At the end of September, ten funds in our database held 13.90% of Diebold’s outstanding stock. Daruma Asset Management holds 1.87 million shares of Diebold, valued at $55.8 million.