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Capital One (COF) to acquire Discover Financial (DFS) for $35.3 billion in stock. (00:26) Bayer (OTCPK: BAYZF) will cut its dividend by 95% to reduce debt. (01:39) Palo Alto Networks (PANW) Q2 Earnings Preview: Focus on Billing. (02:19)
This is a summary transcript of the podcast.
Capital One (NYSE:COF) confirmed Monday that it has agreed to acquire Discover Financial Services (NYSE:DFS) in a stock-based transaction valued at $35.3 billion. This would create the largest credit card company in the United States by loan amount.
Under the terms of the transaction, each DFS holder will receive 1.0192 shares of COF, representing a nearly 27% premium based on Discover's closing price of $110.49 on February 16, 2024.
Capital One (COF) expects the transaction to generate $2.7 billion in pre-tax synergies and be accretive to adjusted EPS by more than 15% in 2027. He also expects to achieve a 16% return on invested capital and an internal rate of return of $10 billion in 2027. over 20.
Following the closing of the transaction, three members of Discover's (DFS) board of directors, to be named at a later date, will join Capital One's (COF) board of directors.
The transaction is expected to close in late 2024 or early 2025.
The companies will hold a conference call today at 8 a.m. Eastern Time.
In the premarket, Capital One fell 6% and Discover rose 12%.
Bayer AG (OTCPK:BAYZF) plans to cut its dividend by 95% in an effort to reduce debt. Bayer shares rose about 1% in Germany on Monday when the dividend cut was announced.
Bayer AG said in a statement on Monday that it would reduce its dividend policy to pay the legally required minimum amount for three years. Bayer will lower its dividend for 2023 to 11 euro cents ($0.12) from 2.40 euros a year ago.
The dividend cut comes as the company and investors grapple with Bayer (OTCPK:BAYZF)'s long struggle to recover from legal liability related to the Monsanto acquisition and Roundup brand.
Palo Alto Networks (NASDAQ:PANW) is scheduled to report its second quarter earnings after the market closes today.
Analysts expect both sales and bottom line growth to increase year over year, with sales of $1.97 billion and earnings per share of $1.30.
The cybersecurity company is expected to report strong financial results in the second quarter, benefiting from expanding cyber budgets, resilient demand for its services, and requirements from both regulators and insurers. .
Consolidation will also be a key theme as enterprise customers consolidate cybersecurity vendors to combat vendor sprawl.
Billings are one of the key metrics investors are watching after the company has missed expectations over the past two quarters.
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In Catalyst Watch of the day,
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Traders will likely be concerned about the FTC holding a private meeting.
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March WTI crude oil futures contract expires. Crude oil futures (CL1:COM) experienced more volatility on contract expiration dates last year.
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Coca-Cola (KO) CEO James Quincey speaks at the CAGNY conference.
U.S. stocks ended lower on Friday as more economic indicators showed the fight against inflation is far from over.
The Nasdaq (COMP.IND) fell 0.82% and the Dow (DJI) fell 0.37%. The S&P 500 (SP500) fell 0.48%.
Of the S&P's 11 sectors, eight ended in the red, with communications services the worst drop. Materials outperformed rising stocks.
Before the opening bell, the U.S. Bureau of Labor Statistics announced that the Producer Price Index (PPI) rose 0.3% month-over-month in January, beating an expected 0.1% increase and reversing December's -0.1% decline. did. Core PPI excluding food and energy was +0.5% m/m versus consensus +0.1%.
The PPI data came just days after a positive report in the consumer price index, highlighting the fact that inflation has turned out to be much more sticky than the Fed had hoped.
Now let's take a look at the market price as of 6am. Dow, S&P, and Nasdaq futures are in the red ahead of today's opening bell. The Dow fell 0.36%, the S&P 500 fell 0.46% and the Nasdaq fell 0.76%. Crude oil fell 1.2% to more than $77 per barrel. Bitcoin fell 0.1% to over $52,000.
In global markets, the FTSE 100 rose 0.15% and the DAX fell 0.25%.
Biggest move of the day: Intel (NASDAQ:INTC) is in talks with the Biden administration to secure more than $10 billion in subsidies for semiconductor manufacturing after reports surfaced indicating the company is in talks with the Biden administration to secure more than $10 billion in subsidies for semiconductor manufacturing. It rose by 4%.
Today's economic calendar:
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
